The best bubble indicator, per the Economist, is a wide divergence between the monthly cost to rent a place and the monthly cost to purchase it.
I think so. One of my "hobbies", is income real estate investment. In Hawthorne CA, (near LA), a seven unit apt. bldg.. was offered for $1m,395K with rents at only 1/2 the amount to crack the nut on a mortgage with 20% down. It's a bigger fool deal if I ever saw one.
Since the Omnibus Tax Act of 1986, such deals (loosing money for tax advantages) don't make any sense. It's time to hold cash, or notes with 1st. position and equity.