So what is a housing bubble, how did the US get here, and what will happen if it bursts?The most recent housing bubble is borne out of a severe imbalance in the real estate market.
It is somewhat different than the housing bubble that preceded the 2008 crisis, when a combination of cheap debt, perverse incentives among, and complex financial engineering led to many borrowers being placed into mortgages they could not afford. When that bubble burst, it triggered a foreclosure crisis among homeowners, as well as a credit crisis among the investors who owned bonds backed by these underwater mortgages. The end result was a globalSpurred by cheap mortgage debt and the need for more space, buyers are clamoring for a limited amount of inventory, and home sellers capitalize on that by raising prices.
The concern of a bubble bursting is when — and how quickly — the market rebalances. An abrupt shift could result in turmoil. For example, if prices see a sudden sharp decline, many people who recently bought a place could suddenly be paying for a mortgage that is worth more than their house. While the events that led to the housing crash of 2008 differ from the issues plaguing the housing market today, talk of a bubble bursting is again on the rise.
It’s not gonna happen houses are being bought cash money
It is amazing to me Business Insider published this article and doesn't have a suspicion the RE narratives could be false again: Did you investigate this story? Or this one? There's more to this story.
대한민국 최근 뉴스, 대한민국 헤드 라인
Similar News:다른 뉴스 소스에서 수집한 이와 유사한 뉴스 기사를 읽을 수도 있습니다.
출처: fox7austin - 🏆 594. / 51 더 많은 것을 읽으십시오 »