Property Bubble

A property bubble occurs when home prices rapidly rise beyond their intrinsic value, driven by high demand, speculative investing, or easy credit. This inflation creates an unrealistic market expectation that prices will keep increasing. Eventually, when confidence wanes or borrowing becomes harder, prices plummet, leading to widespread financial losses and economic instability. Essentially, a property bubble is an unsustainable surge in real estate prices that, upon bursting, can trigger significant economic repercussions.