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 …
Advertisement
Related Stories
Affordability
What Is the Relationship Between Urban vs. Suburban Development and Affordability?
A new paper from Harvard's Joint Center looks at whether expanding the supply of suburban housing could, in turn, help make dense urban areas more affordable
Market Data + Trends
10 States Where Home Insurance Rates Have Risen the Most
Responding to the increasing number of natural disasters, insurers are hiking prices, with some states bearing the brunt more than others
New-Home Sales
Mortgage Rates Are Up but New-Home Sales Still Solid in March
Lack of existing home inventory drove a rise in new-home sales, despite higher interest rates in March
