Can you identify the last real estate bubble that burst without any quantifiable fundamentals? Your suggestion may work in a local or small regional situation but cannot be applied to a broader market. Perceptions, rational or not are driven my something that can be identified.
Can you identify the last real estate bubble that burst without any quantifiable fundamentals?
The crash in the early 1990s that followed the 87 drop on wall street took the prices of real estate lower than fundamentals would suggest. That's part of the cycle: prices rise to an unreasonable degree and then drop to an unreasonable degree.
From what I've been hearing, the market is somewhat stalled in many areas. That is to say at the top of the curve. The next drop will probably be triggered by consumer debt and increased inventories of properties purchased for investment purposes, i.e. flipping.
Just my guess. I could be wrong.