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A real estate bubble or property bubble (or housing bubble for residential markets) is a type of economic bubble that occurs periodically in local or global real estate markets. It is characterized by rapid increases in valuations of real property such as housing until they reach unsustainable levels relative to incomes and other economic elements.
As of 2007, real estate bubbles have existed in the recent past or are widely believed to still exist in many parts of the world, especially in the United States, Britain, the Netherlands, Italy, Australia, New Zealand, Ireland, Spain, France, Poland, South Africa, Israel, Greece, Bulgaria, Croatia, Canada, Norway, Singapore, South Korea , Sweden, Baltic states, India, Romania, South Korea, Russia, Ukraine and China. U.S. Federal Reserve Chairman Alan Greenspan said in mid-2005 that "at a minimum, there's a little 'froth' (in the U.S. housing market) … it's hard not to see that there are a lot of local bubbles" . The Economist magazine, writing at the same time, went further, saying "the worldwide rise in house prices is the biggest bubble in history". Real estate bubbles are invariably followed by severe price decreases (also known as a house price crash) that can result in many owners holding negative equity (a mortgage debt higher than the current value of the property). As with any type of economic bubble, it is difficult for many to identify except in hindsight, after the crash. The crash of the Japanese asset price bubble from 1990 on has been very damaging to the Japanese economy and the lives of many Japanese who have lived through it , as is also true of the recent crash of the real estate bubble in China's largest city, Shanghai . Unlike a stock market crash following a bubble, a real-estate "crash" is usually a slower process, because the real estate market is less liquid than the stock market. Other sectors such as office, hotel and retail generally move along with the residential market, being affected by many of same variables (incomes, interest rates, etc.) and also sharing the "wealth effect" of booms. Therefore this article focuses on housing bubbles and mentions other sectors only when their situation differs from housing.
Oh Canada!...Canadians are buying Real Estate For Sale In South Florida With such an inflated amount of Real Estate for sale in South Florida...."it is an excellent time buy a home." Prices have come down quite a bit over the last 2 years and inventory levels have reached all time highs. Tourist season is now approaching and is now approach
The absolute leader is Vancouver, in May of this year the average price for Vancouver residential property made $591,7 thousands. Calgary occupies the second place ($429,2 thousands), Toronto is on the thirds place ($382,6 thousands). Besides in May 2007 more than 40.000 real estate objects were sold in Canada.
Canada's housing market got off to a surprisingly strong start in 2007 with average house prices rising in all major markets surveyed, according to a first quarter report released today by Royal LePage Real Estate Services. The combination of resilient consumer confidence, moderately low interest rates and improved affordability across most of....
A summary of real estate prices in Nanaimo, BC, Canada. Including MLS average sale prices, number of homes sold etc. Also Nanaimo real estate related topics and RE/MAX news.
An update on the real estate market for the wealthiest municipality in Canada. After several years of astronomical price increases, the market seems to be leveling out. Although, it was one of the few communities that experienced a growth in sales last month.