aim why is it important to understand the cycles of real estate prices? do now what is a housing...

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AIM Why is it important to understand the cycles of real estate prices? DO NOW What is a housing “bubble”?

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Page 1: AIM Why is it important to understand the cycles of real estate prices? DO NOW What is a housing “bubble”?

AIMWhy is it important to understand the cycles of real estate prices?

DO NOWWhat is a housing “bubble”?

Page 2: AIM Why is it important to understand the cycles of real estate prices? DO NOW What is a housing “bubble”?
Page 3: AIM Why is it important to understand the cycles of real estate prices? DO NOW What is a housing “bubble”?

https://www.youtube.com/watch?v=QVFBojFJTZM__ The housing bubble bursts. 

__ Homeowners use their houses as collateral to buy 

big‐ticket items.

__The housing bubble begins.

__Housing prices drop, and many homeowners are unable to repay their debts.

__People purchase overvalued homes.  

WHY DOES THE BUBBLE BURST?

Page 4: AIM Why is it important to understand the cycles of real estate prices? DO NOW What is a housing “bubble”?

What causes real estate prices to rise and fall? Why don’t they generally stay the same?

How do interest rates affect housing prices?

When should you sell your house? What factors influence your decision?