What is a housing bubble? Answering your questions as housing market spikes

Posted on AllSides April 1st, 2022
From The Left
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ANALYSIS

America's real estate market may be showing signs of a housing bubble as prices become “unhinged from fundamentals,” according to the authors of a blog post published by the Dallas Federal Reserve Bank.

House prices can fall out of sync with market fundamentals like supply and demand when there is a widespread belief that prices will keep climbing.

“If many buyers share this belief, purchases arising from a ‘fear of missing out’ can drive up prices and heighten expectations of strong house-price gains," according to the researchers.

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https://www.usatoday.com/story/money/personalfinance/real-estate/2022/03/31/housing-market-bubble-home-prices/7232997001/

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