Wednesday 8 November 2017

12 Sign Of Housing Bubble

1. Shaky loans are common.
2. Bubbles can be determined when an increase in housing prices is higher than the rise in rents.
3. High ownership ratio combined with an increased rate of subprime lending may signal higher debt levels associated with bubbles.
4. An increase in unsold inventory/vacancy.
5. Lower occupancy and lower rents.
6. A downturn in general economic activity that leads to less disposable income.
7. There’s lots of leverage
8. Home prices are rising faster than salaries.
9. When loses mount, credit standards are tightened, easy mortgage borrowing is no longer available, demand decreases, supply increases, speculators leave the market and prices fall.
10. Foreign demand slows.
11. When there are no signs.


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