Who profits off of people worrying about another economic crisis? I'm pretty knowledgeable on my local real estate market, and people are constantly telling me we're in a bubble (we're not) and it's all going to come crashing down this year (it won't). It seems very common these days for people with next to no economic expertise to be certain of a coming crash. I don't think it can be credited to everyone watching the Big Short.
Edit: Explanation because i'm getting downvoted. I live in Utah. Our prices have increased quite a bit in the past couple years. The first bit of increase was justified by the increase in high paying tech jobs, but then sellers got greedy. We're currently in a stalemate where nothing is selling because sellers want unrealistic prices. That's not a bubble, that's a market correction.
When prices reach a point where you can't pay your mortgage by renting out the property then you can pretty much guarantee that prices are on the (too) high side.
> ...but then sellers got greedy. We're currently in a stalemate where nothing is selling because sellers want unrealistic prices.
Technically...buyers make the market. Without a willing buyer it's all just wistful thinking.
The real question is if the prices are truly unrealistic or are they necessary to ensure the seller isn't losing money on the deal?
It was really interesting to watch. Prices kept going up until spring of 2018 when they crossed the threshold into too high territory. This is where we were kind of in a bubble because there were some willing buyers paying more than they could rent for. There weren't very many buyers that could afford those prices though, Salaries in Utah are historically lower than they would be in similar markets else where. If you're in Utah there's usually good reason to be stuck here. Religion, family, obsession with skiing, etc.
So now sellers are wanting the prices that houses sold for in the spring, but there just aren't enough buyers out there that can stomach that. And certainly not enough salaries out there that can stomach that.
> I'm pretty knowledgeable on my local real estate market, and people are constantly telling me we're in a bubble (we're not)
I don't know your real estate market, but real estate seems to be in a bubble basically world wide.
A bubble can easily predicted when looking backwards. Regarding the future: The Case–Shiller index does not make current US real estate prices look like a bargain.
Edit: Explanation because i'm getting downvoted. I live in Utah. Our prices have increased quite a bit in the past couple years. The first bit of increase was justified by the increase in high paying tech jobs, but then sellers got greedy. We're currently in a stalemate where nothing is selling because sellers want unrealistic prices. That's not a bubble, that's a market correction.