The Seeds of the Next Housing Crisis Have Been Planted

We’re seeing the same telltale signs that we did a decade ago

by Michael Brush
Market Watch

Back when the 2005-07 housing bubble was brewing, photos of impossibly small houses selling for insanely high prices famously made the rounds. It was one of those signals that you look back on and say, “Hmmm … that was a clear indictor of trouble ahead.”

So in what feels like déjà vu, it’s worrying now to see a glorified “tool shed” on the market in New York for a cool $500,000. In Brooklyn, no less. Not even in Manhattan.

Here are some other troubling anecdotal signals on the housing market:

1. A major financial website recently ran a guide to the best cities to “flip” houses in. (I don’t want to encourage the behavior.) Real estate speculation via house “flipping” was another early sign of trouble ahead.

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