Hindsight is the easiest way to identify a property bubble. But, the problem with hindsight is that it provides no protection for the present. Economists like to theorise the events that lead to a property bubble. And to attempt avoiding one, they indicate that a market has peaked or is about to fall. The problem with the identification and avoidance of a property bubble is that you expect the...
One of the biggest changes in the residential real estate industry is the reliance on building inspections when buying a home. Historically this was uncommon. People bought and sold property on gut and it was rare for buyers to discover major faults with their homes. Enter the 1980’s and the downward spiral in the quality of both materials and design. This was ongoing throughout the 90’s and right...