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 and/or bubble:
“To die proudly when it is no longer possible to live proudly. Death freely chosen, death at the right time, brightly and cheerfully accomplished amid children and witnesses: then a real farewell is still possible, as the one who is taking leave is still there; also a real estimate of what one has wished, drawing the sum of one’s life—all in opposition to the wretched and revolting comedy that Christianity has made of the hour of death.”
—Friedrich Nietzsche (1844–1900)
“Wilt thou have this Woman to thy wedded wife, to live together after God’s ordinance in the holy estate of Matrimony? Wilt thou love her, comfort her, honour, and keep her in sickness and in health; and, forsaking all other, keep thee only unto her, so long as ye both shall live?”
—Book Of Common Prayer, The. Solemnization of Matrimony, “Betrothal,” (1662)
“While this America settles in the mould of its vulgarity, heavily
thickening to empire,
And protest, only a bubble in the molten mass, pops and sighs out,
and the mass hardens,”
—Robinson Jeffers (1887–1962)