Asgn 10 - Pogodzinski Urban Economics 12/6/09 Assignment...

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Pogodzinski Urban Economics 12/6/09 Assignment 10: The Housing Bubble Over the past decade, the concept of the housing bubble has become much more prevalent within the United States. The idea of the housing bubble involves various regions throughout the United States which had the most dynamic real estate markets. As a result of inflation, the housing bubble demonstrates a significant increase in the value property and homes, which in turn results in a severe transfer in wealth. Many people who timed the housing market correctly were able to make large amounts of money on the real estate owned properties. However, the underlying principal of the housing bubble is that prices exceeded high enough to the point maximization. At this point, real estate was no longer appreciating; in fact, in a few short years the values in home prices dropped significantly below the initial price which led to the current financial crisis within the United States. The housing bubble would not have been made possible if it were not for the
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This note was uploaded on 09/08/2010 for the course ECON 165 at San Jose State.

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Asgn 10 - Pogodzinski Urban Economics 12/6/09 Assignment...

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