There are some warning signs of which to be wary. One of the main signs is the increasing amount of private debt consumers are taking on because they feel confident about their future. When the loans failed, US law allowed those failed homeowners to hand the keys, and property, back to the bank. As the number of loans failed, banks started calling in more loans and the cycle began. Reducing debt is the safest option, even as property prices soar in the meantime.

Source: Otago Daily Times October 10, 2016 17:15 UTC