Definition of Housing bubble:
A housing bubble, or real estate bubble, is a run-up in housing prices fueled by demand, speculation, and exuberant spending to the point of collapse. Housing bubbles usually start with an increase in demand, in the face of limited supply, which takes a relatively extended period to replenish and increase. Speculators pour money into the market, further driving up demand. At some point, demand decreases or stagnates at the same time supply increases, resulting in a sharp drop in prices—and the bubble bursts.
A housing bubble is a temporary event, but it can last for years. Usually, it’s driven by something outside the norm such as demand, speculation, high levels of investment, or excess liquidity—all of which can cause home prices to become unsustainable. It leads to an increase in demand versus supply. According to the International Monetary Fund (IMF), housing bubbles may be less frequent than equity bubbles, but they tend to last twice as long.
Temporary condition caused by unjustified speculation in the housing market that leads to a rapid increase in real estate prices. As with most economic bubbles, it eventually bursts, resulting in a quick decline in prices. The end of a housing bubble is hard to predict given the fact that economic conditions can change without warning. If a housing bubble swells to an extremely high level, the aftermath of a burst may set the housing market back years.
How to use Housing bubble in a sentence?
- The U.S. experienced a major housing bubble in the 2000s caused by inflows of money into housing markets, loose lending conditions, and government policy to promote home-ownership.
- If there is a housing bubble if you can get in at the right time you can make some great profits in the real estate market.
- A housing bubble a sustained but temporary condition of over-valued prices and rampant speculation in housing markets.
- I could not purchase a home with my wife at this time because of everything that happened to the housing bubble recently.
- A housing bubble, as with any other bubble, is a temporary event and has the potential to happen at any time market conditions allow it.
- If there is a housing bubble that is taking place you can get in after it bursts and get great buys on real estate.
Meaning of Housing bubble & Housing bubble Definition