Recent research by realtor.com examined certain red flags that caused the housing crisis in 2005, and then compared them to today's real estate market. Today, we want to concentrate on four of those red flags.
All four categories were outside historical norms in 2005. Home prices were way above normal ratios when compared to both rents and incomes at the time.
Here are the categories with percentages reflecting the unrealistic ratios & numbers of 2005 as compared to the current market. Remember, a negative percentage reflects a positive gain for the market.
Today, experts are keeping a close watch on the potential red flags that went unnoticed in 2005.