[Excerpt] According to the American Heritage Dictionary of the English Language, (Fourth Edition Copyright 2000 by Houghton Mifflin Company), a fad is defined as: “A fashion that is taken up with great enthusiasm for a brief period of time; a craze.” Could real estate investors be subject to “a craze”? It sure feels that way.
The scene is a crowded market and all around me people feel desperate to purchase at least one of what is being sold. Am I describing my experience of buying a pet rock as a child or today’s world of investing in real estate. The answer is, in fact, both. Don’t misunderstand me, I am not really into fads: No fad diets for me or break dancing in my past. Mohawks were not for me. I don’t get up in the morning on the lookout for the latest craze, but nonetheless, the real estate fad seems to have found me.
Orscheln, M. (2006). Is real estate a fad? Cornell Real Estate Review, 4, 89-91.