House Price Bubble

A house price bubble occurs when property prices rise rapidly beyond their intrinsic value, often driven by speculative buying and overly optimistic market expectations. This surge is usually fueled by low interest rates, easy credit, or hype, making homes seem more affordable and desirable. Eventually, when buyers realize prices are unsustainable and demand drops, prices can plummet quickly, leading to financial losses for homeowners and the broader economy. Essentially, it's a situation where house prices are inflated beyond their true worth, creating a temporary overvaluation that risks collapsing.