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A housing bubble occurs when the rise in house prices is driven by demand and not the country\u2019s economy. <\/b><\/p>
The real estate prices rise, however, there is no logical explanation for the rise in real estate prices, such as job creation, interest rates, or demographic changes.<\/b><\/p>\n
A similar situation in real estate occurred in the country before the great recession of 2008. <\/b><\/p>
The constructions, sales, and prices were booming at a very fast pace in the real estate sector, and eventually, the housing market bubble ended bursting. <\/b><\/p>
This happened because the housing market was booming for all the wrong reasons.<\/b><\/p>\n
While all this was happening, the lenders were too lenient in providing the mortgage, and many borrowers were unable to make their mortgage payments once the recession hit and many borrowers lost their job. <\/b><\/p>
This simplified the situation a bit. But when the economy collapsed, everything else collapsed with it like a house of cards.<\/b><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t