For the most part, stock market investors, are aware of and accept the risk that prices will fall from time to time, many people who purchase a home do not believe that the value of their home will fall soon.
That said, compared to other asset types, over the last fifty years, its unsual to see bubble in the housing market which is immediately followed by a housing market crash; The last obvious example was the Credit Crisis.
1) After an Extended Period of Acceleration, Home Prices Are Plateauing
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 housing market crash or at a minimum, a more benign correction.
When we start to see lower mortgages expanding in the market, it’s another warning that a housing market crash is on the way.Higher mortgages could create a housing catastrophe if lenders relax underwriting credit standards and riskier mortgage requirements.