Forecasting crashes in local real estate markets

When does the bubble burst? Key warning signs are a drastic drop in the number of transactions (with a simultaneous flood of listings), lengthening exposure times of ads, and a drastic tightening of credit policy. When the so-called street rushes to buy apartments 'for investment', professionals close their positions and move to cash. In the phase of a sharp crash, when prices fall, the biggest and most profitable bargains are acquired by buying first-hand from desperate, indebted owners who need a quick rescue without paying expensive agents.