5 Signs Of A Real Estate Bubble

5 Signs Of A Real Estate Bubble


Do You know the signs of a real estate bubble in your local market. The Cunard Team is introducing short videos like 5 Signs of a Real Estate Bubble as part of our blog to help real estate buyers, sellers, and investors stay up to date and in the know. We focus on New York because that is where we live and work. The information we provide can be useful in markets all around the world. We use our industry expertise and micro-market knowledge to help our clients and would like to offer that help to you as well. This is the first of many blogs to come so please reach out to join our mailing list or subscribe to one of our social pages.

5 Signs of a Real Estate Bubble

5 Signs Of A Real Estate Bubble

Do you know the signs of a real estate bubble?Watch out for these 5 signs.

  1. Shaky Loans Become the Norm – Sub-prime lending, regardless of how qualified, is considered one of the biggest culprits of the 2008 crash.
  2. Homes Are Leveraged to the Hilt – When Buyers stretch themselves financially, to buy into a hot market; they turn to financing with little to no money down. Once prices adjust downward, many homeowners are left with a zero or negative home equity.
  3. Living Expenses Rise Faster Than Salaries – Fast growing cities are the first place to look for the next bubble. As Long as credit conditions from bank lenders are tight, there won’t be runaway price inflation.
  4. Real Estate Investors and Flippers Are Everywhere – When you see average people with little or no real estate experience suddenly becoming “Real Estate Investors”, that can be a sign that the end is near.
  5. Interest Rates Start to Rise – Low interest rates make mortgages affordable for buyers and help keep demand high. For this reason, when interest rates rise, demand for housing tends to fall. This can spell the beginning of the end of a housing market boom.

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