A real estate bubble or property bubble (or housing bubble for residential markets) is a type of economic bubble that occurs periodically in local or global real estate markets. It is characterized by rapid increases in valuations of real property such as housing until they reach unsustainable levels and then decline.
The questions of whether real estate bubbles can be identified and prevented, and whether they have broader macroeconomic significance are answered differently by schools of economic thought, as detailed below. The financial crisis of 2007–2012 was related to the bursting of real estate bubbles around the world, which had begun during the 2000s.
Read more about Real Estate Bubble: Identification and Prevention, Macroeconomic Significance, Housing Market Indicators, Real Estate Bubbles in The 2000s
Famous quotes containing the words real estate, real, estate and/or bubble:
“It’s rather grisly, isnt it, how soon a living man becomes nothing more than a collection of stocks and bonds and debts and real estate?”
—John Dos Passos (1896–1970)
“There is no real teacher who in practise does not believe in the existence of the soul, or in a magic that acts on it through speech.”
—Allan Bloom (1930–1992)
“Not a flock of wild geese cackles over our town, but it to some extent unsettles the value of real estate here, and, if I were a broker, I should probably take that disturbance into account.”
—Henry David Thoreau (1817–1862)
“Then a soldier,
Full of strange oaths, and bearded like the pard,
Jealous in honor, sudden, and quick in quarrel,
Seeking the bubble reputation
Even in the cannon’s mouth.”
—William Shakespeare (1564–1616)