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.

---

How to Become a Successful Real Estate Investor

Many folks dream of becoming real estate investors, but not... Read More

Where is Florida Investment Property

Florida Investment Property ? Why Investing is a Wise Decision... Read More

Real Estate Marketing, Do You Use Direct Mail?

Prospecting for leads is by far the most difficult part... Read More

NAHB?s Voluntary Model Green Home Building Guidelines

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

How Can Real Estate Investors Profit From The Internet?

The Internet is a powerful marketing tool, but just how... Read More

Loan Officer Training: Learn How To Shape Realtors Perceptions

In medicine, a placebo is a pill that you think... Read More

Seven Questions You Should Ask When Buying a Condo Hotel Unit

You may have heard all the buzz about the newest... Read More

Real Estate Investing Skill Acquisition

Real estate investing is not in any list of high... Read More

Stay Motivated With REI Till The Deal Comes

I know many investors step into the game of real... Read More

Finance Your Real Estate Investment Properties

Unlike traditional residential real estate mortgages, real estate investment financing... Read More

What to Look for in a Real Estate Agent

Real Estate Agents play an essential, critical role in the... Read More

The UK has Gone Property TV Show Crazy!

The UK has gone property TV crazy. There are now... Read More

Curb Appeal

First, lets start with what it is. Curb appeal is... Read More

What To Expect In Closing Costs On A Home Purchase

Many are taking advantage of this year's low mortgage rates... Read More

Buying a Vacation Home

You'd like to buy a vacation home, but you're not... Read More

Houses For Sale By Owner - Negotiating Tips

Houses for sale by owner, also known as "FSBOs," are... Read More

Building A Home? Want To Ask A Builder The Right Questions - Not The Dumb Ones!

These are real builder questions that I got from readers... Read More

Mancos Real Estate

Real estate: availability and costIn 2000, the median home value... Read More

Flipping Fixers: Using Transformation Psychology for Top Dollar

Satisfying and lucrative real estate investment depends upon your correct... Read More

Build Your Retirement By Investing In Real Estate

Most people buy one or two properties. One is their... Read More

Boston Real Estate - Interest Rates and Inventory Must be Analyzed when Selling Your Boston Home

When selling your Boston home, it's good practice to be... Read More

10 ?No Money Down? Ways to Buy Real Estate

Turn the Television on any Sunday morning and you'll find... 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

What are the Top 11.5 Criteria for Selecting an Orlando Investment Property

1. Make sure units are larger than 1800 square feet.This... Read More

Guide To Finding Maui Waterfront Property

Have you ever dreamed of living in a spectacular tropical... Read More

Advantages and Disadvantages to Selling a House on Your Own

As with any business transaction, there are pros and cons... Read More

Why is Now the Time to Buy in Turkey?

Turkey is a paradise of sun, sea, mountains, and lakes... Read More

OPM - The Art of Leveraging

Equity lender, hard money lender, private investor or what ever... Read More

Real Estate Internet Marketing Is The Way To Go

Real estate Internet marketing is a booming business, along with... Read More

Foreclosure

Foreclosure under a mortgage requires a court ordered sale conducted... Read More

Searching the Hawaii Property Listings

Maui is an island so full of life and vivacity... Read More

Should You Buy Real Estate Now

I have been seeing the market on fire for a... Read More

Investment Property Part I: How Not to Become a Slumlord

After riding the ups and downs of the stock market... Read More