At a 2013 Summit Conference, John Burns Real Estate Consulting invited 73 housing industry executives to compile 10 qualitative and 10 quantitative signs of a housing market bubble. Nearly a decade later, John Burns says 16 of those 20 indicators apply to current market conditions.
From waning demand and falling sales to lazy underwriting and a rise in real estate careers, today’s housing downturn shares many similarities with the housing bubble and bust that preceded the Great Recession.
- Qualitative Sign: In ~2005, Jimmy Buffett played at a land broker party. We just checked off the “outlandish parties” bubble sign when a mortgage company paid for Imagine Dragons at their conference last month.
- Quantitative Sign: The industry optimists keep reminding us that low supply and pristine mortgages are some of the saving graces this time around.
For the full list of market bubble indicators …
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