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Microeconomics - The Property Markets - Term Paper Example

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This paper, Microeconomics - The Property Markets, stresses that the concept of the ‘housing bubble’ and the impact it has had on the American markets has been very long debated and argued. A number of economists feel that this has overinflated the home prices. …
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Microeconomics - The Property Markets
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Download file to see previous pages Further research recommendations have been made to study how the housing bubble has impacted the economy as a whole.
The American real estate market from the 1800’s has been one with constant ups and downs and the major movements in these markets have led to a number of major world events. A few of the major events that impacted the markets include World War I, The Great Depression, and also World War II. An excellent example of this is when World War I started the markets were impacted to a great extent and the real estate markets dropped drastically during this period. This paper aims at discussing, in brief, the history of the real estate markets and the recent housing bubble that had been formed within the markets. The paper will firstly provide a brief history of the real estate market, following which the ‘housing bubble’ will be discussed in brief. This will be followed by the aftermath of the burst and the impact that the bubble had on the markets. A brief of the financial assistance that was received by the homeowners has also been discussed.
As explained earlier, World War I brought about a major change in the markets and there was a drastic drop in the prices. The main reason for this was that many of the citizens of the country were either fighting or were involved in the war in any other manner. The economy was being driven by the war and was also supplying the war to a great extent. Again during this period, the demand for buying homes was much lower which in turn led to the decrease in the markets. Similarly, as the war ended the demand for buying homes started to increase which in turn led to an increase in the prices and the economy began to rise as well.
Later, again during World War II, the economy saw a major sink and this was one of the lowest periods for the US Real estate markets.  ...Download file to see next pagesRead More
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