Rapidly rising prices
High expectations for continuing rapid rises
Overvaluation compared to historical averages
Overvaluation compared to reasonable levels
Several years into an economic upswing
Some underlying reason or reasons for higher prices
A new element, e.g., technology for stocks or immigration for housing
Subjective “paradigm shift”
New investors drawn in
New entrepreneurs in the area
Considerable popular and media interest
Major rise in lending. Increase in indebtedness
New lenders or lending policies
Consumer price inflation often subdued (so central banks relaxed)
Relaxed monetary policy
Falling household savings rate
A strong exchange rate