Real Estate Bubble: Sophisticated Musical Chairs?

The real estate bubble is a hot topic today; annual appreciation and housing prices have never been higher in most U.S. markets. While personal incomes have risen in the single digits over the last four years, home prices have risen in the double digits. Home prices in some markets will reach levels in the next two years where they are not affordable to the majority of first-time buyers. As with any market, once part of the market can't participate it will impact other areas of the market.

Market timing in over-heated real estate markets will be key in the next two years. Those waiting for the very top of prices might be holding some over-mortgaged property. Understanding when to take profits before demand weakens is an art most unseasoned individual real estate investors should have learned from their experience in the dot-com bust of 2000.

When's the time to get out? Look for incentives by builders on completed new construction buildings or homes; this indicates an over-supply of new units. Research days on market or the length of time of property has been on market. If the typical time recently has been 30 days for sold properties and now market times for the majority of sold properties are 60 or more days, the market is softening. Home prices and mortgage rates effect each other, as interest rates drop, the more buyers can afford to pay for a home, but as rates rise buyers can afford less of a purchase price. Watch interest rates as an indictor of deflating prices.

Make sure you have a chair when the booming housing market music stops.

Mark Nash is a real estate author and broker. His latest book 1001 Tips for Buying and Selling a Home was recently published. Mr. Nash is residential real estate a broker in Chicago. His informative consumer focused real estate tips have been featured on CBS The Early Show, Bloomberg TV, Marshall Loeb's syndicated column on Dow Jones Marketwatch and in Ellen James Martin nationally syndicated column Smart Moves.

---

The Real Estate Cycle

The real estate cycle, like the business cycle, refers to... Read More

Real Estate Investing ? Finding Cheap Houses

Real estate investing expertise can certainly accommodate the luxury home... Read More

Encouraging Debt

Most of us don't talk about money, finances, credit, debt....Young... Read More

Much Ado About Mansionization?

Is there a perpetual shadow hovering over your house? Do... Read More

Is 100% Annual Return On Investments Possible With Low Risk Land Investments?

In last week's article, we discussed how substantial profits could... Read More

Raising Money For Property Development

In addition to finding the right property, one of the... Read More

The Person With The Most Money Wins!

More money can mean better:- Health Care - Relaxing... Read More

Miami Property Booming for Foreign Investors

Miami tourism is growing and so is the Miami property... Read More

5 Rock-Solid Real Estate Investment Strategies

Investing in real estate is more complex than simply buying... Read More

Sell Your Home Without Paying Any Commissions

All of us know that real estate commissions can work... Read More

Probate & Obituary Marketing

I start my marketing with obituaries followed with probate filings... Read More

Staging® Your Home for Sale: a Superior Real Estate Home Marketing Technique: Part 1

Every Realtor KNOWS that a home should be shown in... Read More

Getting Ready to Sell Your Property

We all have had the experience of someone important coming... Read More

Property Investors, Scrub Your Thoughts and Start Again - Brazil, Brazil, Brazil!

Brazil Property - FortalezaThe PlaceWhat to do in a place... Read More

Real Estate Investing: Infomercial and Mentoring Scams

Flipping through late-night infomercials recently, I saw two real estate... Read More

3 of the 5 Ways Real Estate Can Take Advantage of Blogs and RSS

Earlier this month, Realtor Magazine announced that they would be... Read More

What We Do To Sell Your Property!

Once you have contracted us to sell your property we... Read More

Give Your Home A Timeless Feel

In the world of real estate, there is a huge... Read More

What Makes Fractional Shares Different from Owning Other Kinds of Vacation Properties?

Fractional shares ("fractionals") are sometimes confused with other vacation property... Read More

Residential Income Property Financing: Part 2 of 3

Welcome to the second segment of a three-part series about... Read More

Buying A Home ? What Is That Noise!?!

You've found the perfect home, closed escrow and just finished... Read More

Buy or Sell First?

When it comes to home buying, the ideal situation would... Read More

What Homeowners Should Know to Stop Foreclosure- Speaking Your Lenders Language

Financial literacy is the means of empowering consumers to make... Read More

Investment Real Estate -- A New Twist: Be the Bank, Not the Landlord, and Get Rich Without the Work!

I was a landlord for a decade, and I believe... Read More

NAHB?s Voluntary Model Green Home Building Guidelines

The voluntary Model Green Home Building Guidelines are designed to... Read More

Buying Property in Spain

You have made the decision to move to Spain and... Read More

Back To The Future - Big Changes Are Coming, Get Ready Now

The comments below are quoted from a recent speech by... Read More

Condos Vs. Condo Hotels For Vacaton Home Ownership

Condo hotels, also called condotels, are a relatively new concept... Read More

How To Buy Real Estate - Yes, YOU CAN!

If you want to buy a house but don't think... Read More

Virtual Agent? Online Real Estate

When preparing to sell a house, you should always consider... Read More

Property Investing Secrets 7

Property Investing Secrets:How Buying Real Estate Is Like Planning a... Read More

Flipping Houses for Gold: Three Tips to Help You Find the Perfect Fixer

Many real estate investors enjoy "flipping houses," or buying and... Read More

A Few Easy Ways To Take The Headache Out Of Moving

Moving from one house to another is always a challenge,... Read More