Is the housing market setting up for a crash? 2 experts — including one who called the 2008 bubble burst — share the warning signs that a real-estate downfall is coming.

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erickroberto1996 erickroberto1996

23-02-2022
Social Studies

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Is the housing market setting up for a crash? 2 experts — including one who called the 2008 bubble burst — share the warning signs that a real-estate downfall is coming.

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Tundexi Tundexi · Answer 1 · 2022-02-28T13:54:14+01:00

When explaining a housing market setting up for a crash, we need to talk about the 2008 bubble burst and share the warning signs that a real-estate downfall is coming.

What led to the housing bubble?

A housing bubble refers to a situation whereby a real estate demand exceeds the supply which causing its average price of properties for sale to rise at an alarming rate.

In conclusion, one of the event that fueled the housing bubble in 2008 was cheap credit and lax lending standards.