Atlantic City Has Value - Quick Buy a Condo

This article tries to rationalize why Atlantic City property might not be too over valued. I think I know why. Unless you need to be in walking distance of your job at one of the casinos, then there is absolutely no reason to live in AC.

"People used to wonder whether there was a real estate price bubble. Now they ask when the bubble will burst and what will that mean for homeowners and the economy.

It must be particularly nerve-wracking for recent buyers of homes in the Atlantic City region, which has led the Northeast with a 23 percent rise in prices in the past year alone.

The risk to buyers is considerable.

A drop in housing prices could leave owners stuck paying mortgages larger than their houses are worth - giving them losses if they sell or refinance, losses if they keep paying, and a greater chance of defaulting on the loan.

Many people believe (correctly, I think) that the economic and population growth of the region mainly have been responsible for rising home prices here and will continue to support those prices as the bubble bursts nationwide...."