financial crisis

What is a housing bubble?

What is a housing bubble?

 housing bubble, also sometimes referred to as a “real estate bubble,” occurs when the price of housing rises at a rapid pace, driven by an increase in demand, limited supply and emotional buying. Another significant cause can be a prolonged period of sub-normal interest rates. Lower rates allow more people to buy, stimulating demand. Once speculators recognize that housing prices are on the...

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