Uttering the words "housing bubble" is enough to make any real estate agent or interested real estate investor shudder. It conjures up images of the great real estate bubble burst of the new Millennium, which ushered in the Great Recession and brought along with it one of the worst housing markets in history.
Fortunately, most housing bubbles are not this drastic and these real estate phenomenon is actually more common than most people think. These are the common signs and symptoms that are associated with a housing bubble.
Cost of Living Increases Faster than Wages
Inflation is often a warning sign of many economic conditions, including a housing bubble. When the cost of living rises faster than wages, people are often forced to rely on…