6 Flashcards
1
Q
Bubbles, Booms, and Busts
A
Bubble is when a real estate price reaches a certain level; however, the price level is subjective as per agency specification
▪ Boom is when prices illustrate an upward trajectory/path
▪ Bust is when a price declines below a certain level
2
Q
What causes booms
A
Speculation in commodity prices causes real estate bubbles Inflation adjustment does lead to bubbles
▪ Broadly, prices (real estate, etc) become unsustainable
3
Q
Factors that minimises bubbles include
A
Tax relief
Interest rates
Retirement plans
Job securities
Builder incentives
4
Q
Wh
A
