Signs of Apprehension of a US Housing Bubble

A Housing Bubble is defined as a type of cyclical economic bubble that occurs when the price of homes becomes overly inflated, rising rapidly due to speculation, eventually reaching unsustainable levels, then dropping (burst) dramatically.

Our last bubble occurred in 2007 and the fall from grace was devastating. Are there indications that we're heading towards yet another bubble in the near future?

There are some who believe the next Housing Bubble is already underway. Some of the tell-tale signs of a bubble are finding their way back into the real estate landscape:

1. Increased Government Involvement and Intervention

2. Low Interest Rates

3. Relaxed Lending Requirements 

4. Greed (Wall Street Fall-Out)

Realistically speaking, we are a far way off from repeating the mistakes of the last housing bubble. Most industry analysts are predicting that it will take several years, if not more, for the current housing market to stabilize, let alone flatten out in terms of home valuations.

In some areas, home prices continue to drop. In other regions, we're seeing improvements, even multiple offer situations, leading some to speculate that a shift to a Seller's market is happening.

This simply reflects the truth that real estate is local and that markets can vary significantly from area to area. All the more reason to entrust your next move to proven local real estate experts.

One answer to the housing bubble question is to have responsible homeowners get back into the housing market. You can start with the research and education process with the free eBook "The Essential Guide to Buying Your First Home." Even if it's not your first home ever, this guide will help re-introduce you to the home buying process post-bubble.

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