People also ask
What happens when a housing bubble bursts?
This further increases demand and prices, causing the bubble to stretch and grow. At some point, homes become overvalued and housing prices become unsustainable. Demand decreases, but the supply increases. Now, with fewer buyers, housing prices come crashing down and the housing bubble bursts. What causes a housing bubble?
Is the housing market showing evidence of a bubble?
That has put the squeeze on home buyers and the real estate market. Indeed, some researchers and economists believe the market has begun to show evidence of a housing bubble.
What does a bubble mean for homebuyers and sellers?
So what does a potential bubble mean for homebuyers and sellers? The persistent lack of supply in today’s market combined with surging demand is driving up prices and pushing more prospective buyers to the sidelines.
How much could home prices fall?
How much home prices could fall in either circumstance depends on how over-priced a markets is. Table 2 lists some markets that are over-priced right now, even without more increases.