: u6 p& E+ ~9 @5 |4 G+ M- |This is a good explanation to how real estate bubble forms. The market feeds itself to push the prices up, but eventually it will reach turning point, and the bubble bursts.1 z' |9 M" s/ w) Z: u
6 m% d* \! C6 Q3 r* z+ A
The risks to the current market:6 \( q( b! \1 B- W% a7 s' [: z
1) Mortgage rates go up& y% ^4 o2 I& e# c
2) Oil price dropps - r* W* @0 q( Y( }+ w }+ w, h* b3) Less influx 7 W/ N: R1 t1 V4) Speculators quit