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Joseph Moncada | Chiriboga Realty LLC Blog

Wednesday, April 4, 2018   /   by Joseph Moncada

Is the Real Estate Market Going to Crash?

Many Americans worry that the real estate market is going to crash. In  a recent survey 58 percent of people agreed that there will be a "housing bubble and price correction" in the next two years. As a result, 83 percent of them believe it's a good time to sell. 
Warning Signs
There are plenty of signs that the housing market is heading into trouble. 
One sign of an asset bubble is that home prices have escalated. National median family home prices are 32% higher than inflation. That's similar to 2005, when they were 35% overvalued.
The Housing Bellwether Barometer is an index of homebuilders and mortgage companies. In 2017, it skyrocketed like it did in 2004 and 2005. That's according to its creator, Stack Financial Management, who used it to predict the 2008 financial crisis. Similarly, the SPDR S&P Homebuilders ETF has risen 400 percent since March 2009. It outperformed the S&P 500 rise of 270 percent.
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