10. There’s trouble in the economy as a whole
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 https://homeloansplus.org/payday-loans-az/. 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. This means that 1 in every 54 households in the U.S. received a foreclosure notice.
Begin by looking at foreclosure filings and foreclosure activity. This tells you whether foreclosures in the United States are up or down; the number of foreclosures is usually somewhere between 45,000 and 60,000 total foreclosures each month. It’s a good idea to then compare your state’s foreclosure number to the national number.
Local markets don’t always correspond with the national market. They may show a decreasing foreclosure rate, while the country is seeing an increasing foreclosure rate. You can compare this month’s foreclosure rate to that of last month and last year to get a better idea of where we are headed. An increase in foreclosure rates is often indicative that people are struggling financially and an area is more vulnerable
