You should also consider real estate agents when you’re thinking about professionals who can warn you when the housing market is about to crash. Agents are poised to see issues on the ground as they emerge, so their feelings and confidence on the state of things can be telling.
As far as builders go, Page says to keep an eye on price reductions. “Builders [are] usually pretty on top of things going into the summer season. They typically raise prices going into the selling season. If you start seeing them taking reductions, then that’s a sign that they’re nervous about where things are going.”
9. Foreclosures are up
It’s not good when people can’t pay their mortgages and foreclose on their home, but when it happens at scale, it can mean a housing market crash is near.
A foreclosure happens when the owner of a home stops making mortgage payments, which causes the bank to take back possession of the property and put it up for sale at auction. To put things into perspective, during the 2008 housing market crash, there were more than 3.1 million foreclosure filings.More