Concerns are mounting that we may be headed back into problem territory, where easy liquidity fuels overbuilding, high property valuations and low cap rates that are not supported by property income or fundamentals. Of course, the low interest-rate environment is allowing Real Estate many aggressive deals to pencil out. But if interest rates should rise, the current state of affairs could prove to be a bubble in the making.
Then again, not everyone agrees there is cause for alarm just yet.
Read more...Is the Bubble Back? | The Balance Sheet - Yardi Corporate Blog