Real estate bubble

Sir Isaac Newton could not have said it any better; “What goes up, must come down”. These are savvy words to live by, and ring particularly true for the real estate market. A real estate crash surely does not happen overnight. So why is it that when the housing market crumbled about a decade ago it took everyone by surprise? Many factors contributed to this phenomenon, but blame is shared between the financial institutions that lended money carelessly, and with little scrutiny when providing mortgages, as well as on the government whom guaranteed the lenders’ potential loses. The real estate market can easily be compared to a bubble. The housing market bubble grew, and grew, until all the slack was gone and then it popped, leaving many less than amused. During the early stages of the housing market bubble, lenders offered short-term rates which increased the demand for housing. Contractors went on overdrive building new housing developments, and since the houses were selling so rapidly,…

POP! The bulging bubble of the housing market in the United States as previously predicted finally burst in late 2007. With several contributors that previously pumped air into the over-inflated housing bubble now losing steam, the burst of the bubble (or mortgage meltdown) with its remnants was experienced by many Americans whether on a personal or a national level. The burst of the housing bubble saw many home owners lose their homes to foreclosure; short-sales and even bankruptcy as the…

The housing bubble crisis of 2008-2009 was predominately due to the banks over extending customers on their housing loans. The process to originate a mortgage is one to show you have sufficient means to make the monthly payments. Bankers overlooked this part of the verification and granted people who could not afford the payments. Unfortunately, those people called their mortgage servicers explaining that they cannot make the payments. Many were upset, some sold their houses, some could not…

In chapter four, Walker and Lodha’s thesis invites the reader to explore the vastness in the concept of city life. They allude to different factors that draw people towards and away from cities. Chapter four is divided into five sections: cities, Bay Area, greater Los Angeles, real estate, and highways and transportation. In the first section, the authors express how cities are engines of economic growth that are densely populated. The main advantage a city provides is accessibility to airports,…

In the aftermath of the last real estate bubble and financial crisis, millions of homeowners across the country lost their homes in a short sale or foreclosure. These homeowners have spent the last seven years renting homes, rebuilding their credit and their financial reserves. These buyers that have history of a short sale, foreclosure or bankruptcy are referred to as Boomerang Buyers and a ready to re-enter the housing market. Boomerang Buyers are driven for the same reason that they bought a…

class families face potential homelessness. Claim 1: The property business gets better after the financial crisis abates. 1. The selling price of homes skyrocketing again after numbers of local and foreign investors, especially from China, started purchasing properties in compelling quantity. “Middle class Chinese has spent over $28 billion on American homes through 2014.” english.cri.cn, January 6, 2016. 2. It is common for wealthy people owning multiple properties on top of their successful…

In 2007 the financial market plummeted along with the housing market. This event overwhelmed the economy and the real estate market as a whole. Millions faced foreclosure and short sales; thousands lost their homes. Many had to relocate while others faced homelessness. There was a domino effect; vacant homes created increased crime and as a result buyer confidence declined for those who were financially able to buy. Homeowners were underwater; their mortgages were greater than what their homes…

the viewer will notice the huge-scaled robot made up of pastel-heavy and vibrant Victorian buildings, set within a gentrified community - depicted by the modern-industrial neighborhood buildings. The robot is reminiscent of the American science fiction action comic series, Transformers, in which a robot is constructed up from car parts; however, Norris utilizes the Victorian buildings in order to create the Victorian, or also known as “El Defensor de La Maison” (“The Defender of the Mission”).…

The bubble burst. Most bubbles do. People learned a lot from the bust. A lot of good comes from the light that shines on a disaster. Lawmakers, homeowners and investors have been educated. Foreclosure “victims” have had a taste of homeownership. That is a good thing. Lenders have skin in the game again. That too is a good thing. Life is a risk. Risk is a function of knowledge. Both the lender and the buyer share a responsibility. They should each know as much about the other as…

inefficiency is a serious problem. A substantial part of the lower class population is living with the entire family in small one-room homes together with more households. In many cases the houses in the Hutongs, the name of the districts where the majority of the Chinese working class lives, are even removed to create space for new constructions of apartment buildings (Dateline, 2011). Over the last five years many ghost cities have been developed and estimates are that there are 12 to 24…