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Originally Posted by DodgingCars
I think the more telling signs as that the 5-year or so price increases have been around the world. Britain, Austrailia, France, Spain, Belgium, etc., and these countries (especially Britain and Australia) are starting to see their prices dropping. Some market have already slowed. I just heard that price increases in Orange and San Diego Co. are about a 1/3 of what they were last year (something like 7% to last years 21%).
Other indications are that too many houses have been built and there simply won't be enough demand. Estimates show that the demand should be about 1.6 million houses, but 1.9 million were built last year and 2 million are in the process of being built.
I think the bubble is coming, but some markets will be hit first -- probably California and NY first.
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forgot to mention, but a lot of people see australia as a leading indicator and things have started to cool off there as well
and earlier this week they had an executive from ML on CNBC and he said some of the firm's wealthy clients have cashed out of RE and into bonds