How To Spot A Real Estate Bubble

[Blackhawk]

Dear Agents
Real estate bubbles occur when a market is overheated and people
are still investing in property for profit, but the supply is on
the verge of outpacing the demand for homes.
If you are smart, you can spot the bubble while it is developing.
And if you can foresee the burst of the bubble, you can get out
of the market with your profits intact.
Many individual investors make the mistake of seeing the signs of
a bubble market, and not taking steps to avoid loss. If the time
between the listing of a home and the sale of a home begins
increasing, then that is a sure sign that the real estate market
is cooling. Given that during a normal year in a normal market,
the average turn-around time is four to five months from the
listing of a home to the sale of that home, we have a solid
marker for determining how soon we should expect the bubble to
burst.
If the peak turn-around time was five days, and the current rate
is now fifteen days, then you don't have much to worry about
just yet. But, you really should keep your eyes to the horizon.
If the current turn-around time is now three to four months, then
the boom market has played itself out, and you can forget about
the huge profits you could have made six months ago.

Regards
Real Estate Agents

[Aldo]

I don't know where you are, but your area is a totally different world than any I'm familiar with.

One year ago, if I saw a new For Sale sign being pounded into the ground, that property would already have an accepted over-priced offer before I could get to a telephone. That would be the cell phone on my belt.

I watch the RE market closer than my calorie intake (a whole other story) and expected the impending price correction to begin, locally, at roughly the year's end. Apparently the year ended in mid-June in these parts because that's when the bottom fell out of the local RE market. Currently, homes rarely sell in less than about 4-5 months.

Regardless of how carefully investors watch the RE market, their best guess might result in a lucky shot in the dark. The RE market does what it does whenever it's ready to do it. I really dislike being controlled by an inanimate source, but that's how the game is played.

[BrandonModrov]

To be honest it seems like he is spamming the forum with a related article just so people click on his link.

If you use a search engine and copy and paste bits of his article in there you will see that the same article comes up numerous times and it is used by alot of people.

[Debbie]

To be honest it seems like he is spamming the forum with a related article just so people click on his link.

Thank you! Although I haven't said anything verbally but it's sure nice to know that at least one person shares the same suspicion!

[BrandonModrov]

Thank you! Although I haven't said anything verbally but it's sure nice to know that at least one person shares the same suspicion!

Yeah I usualy saw what I am thinking. I have been on alot of forums and have seen tons and tons of spamming so I think it is fairly easy to pick out. If I am wrong I am wrong but this is just a standard PLR article to me.