A real estate bubble is rapid and unsustainable increases in home prices followed by sharp declines in values.

Question

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A real estate bubble is characterized by a rapid increase in home prices that are not supported by economic fundamentals such as wages, and this can lead to a bubble that ultimately bursts, resulting in sharp declines in home values. This pattern has been seen in various markets around the world, most notably in the United States in the mid-2000s.

A Real Estate Bubble Is Rapid and Unsustainable Increases in Home