Housing market bubble

A housing market bubble occurs when home prices rise rapidly beyond their fundamental value, driven by excessive speculation, optimistic expectations, or easy borrowing. This surge is often fueled by buyers hoping prices will continue to increase, creating high demand. Eventually, when confidence drops or borrowing becomes too costly, demand slows, causing prices to fall suddenly. This sharp correction can lead to financial losses for homeowners, investors, and lenders, and may trigger wider economic issues. Essentially, a housing bubble is an unsustainable rise in property prices that eventually bursts, returning prices to more realistic levels.