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 is not quite safe to send out a venture in this kind, unless yourself go supercargo. Where a man goes, there he is; but the slightest virtue is immovable,—it is real estate, not personal; who would keep it, must consent to be bought and sold with it.”
—Henry David Thoreau (1817–1862)
“We are the only real aristocracy in the world: the aristocracy of money.”
—George Bernard Shaw (1856–1950)
“I ‘gin to be aweary of the sun,
And wish th’ estate o’ the world were now undone.”
—William Shakespeare (1564–1616)
“Each swung in danger on its slender twig,
A bubble on a pipestem, growing big.”
—Robert Frost (1874–1963)