10 Warning Signs That Indicate If the Housing Market Is Crashing

10 Warning Signs That Indicate If the Housing Market Is Crashing

Blair has worked with everyone from small business owners to major universities to find their voice and tell their story – their way. When she’s not busy surfing Pinterest for her dream home (complete with massive walk-in closet), she’s busy utilizing her law degree to write for attorneys and real estate professionals.

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For a homeowner or a buyer, the thought that the housing market might be crashing is pretty scary – the last thing you want is to be responsible for an enormous, overvalued asset while the economy is crumbling. But sometimes, the housing market can remain strong while the overall economy is suffering, and vice versa.

1. Home prices are plateauing after long periods of rapid acceleration

When the price of homes plateaus after growing consistently year-over-year, it could serve as a warning sign of a housing market crash.

Land is an appreciating asset because there’s only so much of it (and not all land is buildable). The price of homes (including the land) usually increases by about 4% per year.

When home prices level out or plateau, it affects home appreciation as well as the real estate sales market. Read More