Wealthy Living

13 Major Signs of a Housing Market Crash

Whether you’re a homeowner or a buyer, the prospect of a housing market collapse is scary. The last thing you want is to own a massive, inflated asset while the economy is collapsing.

So, how can you know whether the property market is on the verge of collapsing? While there are some major trends in the housing market, here are seven signs the market is turning south.

Signs of Trouble for the Housing Market

 After an Extended Period of Acceleration, Home Prices Plateau

If one of the trends in the housing market is year on year, consistent real estate price increases, it indicates the possibility of an impending crash or at a minimum, a more benign correction.

Because there is a finite amount of land, it appreciates (and not all land is buildable). The average annual increase in the price of a home (including the land) is roughly 4%.

2) Numerous Risky Mortgages

When we start to see lower mortgages expanding in the market, it’s another warning that a crash is on the way.