Real Estate Market Prediction and Asset Bubble Detection.
There are two main scenarios in which housing prices can rise: Economic growth in certain regions can provide residents with greater opportunities for quality of life, employment, and stability. When this happens, these areas can become desirable locations to stay long-term due to their improved economic landscape. Investment prices could quickly become unstable if the market is driven by speculation, leading to a potentially harmful "bubble" scenario. Navigating the financial markets can be a difficult endeavor. How can investors make informed decisions to differentiate between market bubbles and profitable investments? In this article, we discuss certain metrics that may help in predicting potential opportunities for long-term gains. Interest Rates Interest rates have been a significant player in nearly all of the boom and bust cycles throughout property market history. Although not considered by some as an absolute cause, it is hard to ignore their influential role in the...