Unfortunately, greed is the flavor of the day. You will notice a great deal of speculation buyers are buying property based on plans versus built product. As the end of the boom nears, population growth slows and the ratio of buyers to sellers in the market starts to level out. People also are finding it harder to meet their mortgage payments and this slows down the booms momentum.
Key Boom Signs Checklist . Increasing population . Increasing employment . Increasing incomes . Increasing rents . Increasing property values . High, easy property sales . More accessible fi nancing . Increasing construction . Greed From Boom to Slump Buyers Struggle with Affordability Looking back to 2006, real estate investors who were tuned in to the real estate cycle saw how key drivers and market influencers were pushing a market boom towards a slump. The key driver in this latest US market slump was definitely the credit crisis. That occurred as demand plunged in many over-built markets where housing prices had moved well beyond market affordability.