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what are the outlines of the reasons of housing market crash for research paper.

what are the outlines of the reasons of housing market crash for research paper.

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Answer #1

Reasons for housing market crash :

  • Value of real estate slowly rose up after the dot com bubble, hence creating a bubble
  • Low mortgage interest rates and short term interest rates
  • Lending standards were not good (Easy credit conditions)
  • Speculation from consumers and investors , that believed that prices of homes would continue to rise
  • Inaccurate credit ratings by Credit agencies
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