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The Housing Bubble | Is The Perth Property Market Due For Correction? A bubble is an economic cycle that is characterized by the rapid escalation of market value, particularly in the price of assets. This fast inflation is followed by a quick decrease in value, or a contraction, that is sometimes referred to as a "crash" or a "bubble burst." Back in 2008 we experienced the first Housing Crisis which started in the US and rippled out to the entire globe. Things that eventually caused the collapse of the housing market were Low interest rates making it easier for people to borrow money Rating agencies qualifying people for loans who had no interest in repaying them Stacking these mortgages that were not rated highly into parcels that were brought by investors (CDO's & CMO's) Here in Australia were are seeing record property prices, this calls for concern. With buyers flooding the market prices become inflated. Home prices only stand to move one way. Down. Check out my take on the situation here in WA and some of the newly released statistics. https://www.abc.net.au/news/2021-02-1... https://www.abc.net.au/news/2021-01-2... https://www0.landgate.wa.gov.au/prope... https://www.news.com.au/finance/econo...