What is a Housing Bubble?

An asset suddenly rises in price during a continuous transaction, and the price deviates from its value. At this time, the economy is full of currency bubbles that do not reflect material wealth.

Housing bubble

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An asset suddenly rises in price during a continuous transaction, and the price deviates from its value. At this time, the economy is full of currency bubbles that do not reflect material wealth.

Also called "real estate bubble", "real estate bubble".

. When asset prices rise to an unbearable level, a slump will inevitably occur, as if the bubble burst, and the economy begins to change from prosperity to recession, known as a bubble economy. The bubble of real estate refers to the non-steady rise in the price level relative to the theoretical price due to the excessive expansion of virtual demand. The main characteristics are: the real estate price has a large fluctuation range, there is no stable cycle and frequency, and the money supply in the real estate economy The system has increased dramatically in the short and medium term. Regarding the causes of the real estate "bubble", there are the following three aspects: excessive speculation by investors; consumers and investors have high expectations of future prices; and irrational expansion of bank credit. Once the real estate bubble bursts, it may cause an imbalance in the economic and social structure, lead to a financial crisis and even cause a political and social crisis.