What is a Housing Bubble?
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What Is A Housing Bubble?
A housing bubble means that there is an increase in demand but a decrease in supply. In this case, fewer houses are available compared to the number of people looking to buy.
What happens during a housing bubble?
When a housing bubble occurs, house prices increase significantly. The home that you thought was reasonably priced is now priced considerably higher.
Why does a housing bubble happen?
There are a few things that spark a housing bubble. However, all aspects will play a role in making the housing bubble happen.
- The population increases significantly.
- Low interest rates to make homes more affordable or mortgage products that are extremely attractive to home buyers.
- Risk taking as a borrower. …
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