“The Housing Bubble Fact Sheet,” describes why the rise in housing prices constitutes a housing bubble and what can be expected when it inevitably collapses, the center says.
Over the last eight years, the United States has seen an unprecedented rise in housing prices that has created $5 trillion in bubble wealth. Like the late-1990s stock bubble, this run up in home prices cannot be explained by the fundamentals of supply and demand. It is a speculative bubble that will inevitably collapse and almost certainly throw the economy into a recession when it does, he says. The “Housing Bubble Fact Sheet” provides an overview of the housing market and its implications for the economy:
Check out the Housing Bubble Fact Sheet