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Here are some key signs that ahousing market is poised for massive price drops.

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Inventory Is Steadily Increasing

In a balanced market, increasing supply is met with increasing demand.

But if inventory continues to increase, this is a sign prices could soon be dropping.

As banks and distressed sellers list homes at lower prices, it creates downward pressure on overall market values.

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Increase in Investor Sell-Offs

Investor sell-offs in a given area can lead to plummeting home prices.

Their large-scale sales can flood the market with inventory, further driving prices down.

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