If it bursts, will houses ever regain their current value?
In: Economics
There is no single accepted definition. But it is commonly used to describe situations where people are taking on too much debt to buy houses. This can happen due to dishonest loan brokers that falsify info to complete loans that are too expensive for people to pay off. Or low interest rates trigger people into buying larger or more expensive houses because they hear that low interest rate are making a boom market (a sort of self fulfilling prophecy)
Housing prices have their ups and downs, but do usually return to a medium average after an economic event such as the 2008 crash or covid shutdown.
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