cyberflotsam

Washington, United States. It lies to the ea (7 mi) long and 2 km (1.5 mi) wide. Lake Sammamish runs north and south, stretching from the city of Issaquah, Washington in thding Lake Sammamish has been, in recent times, the most rapidly growing suburban district in the Greater Seattle Metropolitan Area. During the late 1990s arly 2000s, the cities of Redmond, Snoqualmie, Fall City, Issaquah and Bellevue have grown substantially. A new town, Sammamish, Washington was incorporated in 1999, because of the suburban growth.

A real estate bubble or property bubble (or housing bubble for residential markets) is a type of economic bubble that occursby rapid speculative increases in the valuations of real property such as housing until they reach unsustainable levels relative to incomes and other economic elements, followed by decreases (also known as a house price crasive equit mortgage debt higher than the value of the property). Just like any type of economic bubble, it is difficult for many to identify except in hindsight, after the crash.

The Economist magazine said that "the worldwide rise in house prices is the biggest bubble in history" [1], and tate bubbles are believed to exist in many parts of the world, especially in many areas of the Uniteds, Great Brit, ralia, New Zealand, Ireland, Spain, and China. U.S. Federal Reserve Chairman Alan Greenspan said i-2005 that "at a minimum, there's a little 'froth' (in the U.S. housing market) … it's hard not to see that there are a lot ofal bubbles" [2]. The crash of the Japanese asset price bubble from 1990 on has been damaging to the Japanese economy an recent crash of the real estate bubble in China's largest city, Shanghai [4].

Unlike a stock market crash following a bubble, a real-estate "crash" is usually a slower process, because sellers just decide not to sell. Historical"flat" for a period of 3-5 yearinal dollars, such as Los Angeles during ate 80s and early 9s. Due to low inflation in most countries, future corrections may result in a fall in both real and nominal house es.Other sectors such as office, hotel and retaiy of same vaables (incomes, interest rates, etc.) and also sharing the "wealth effect" of booms. Therefore this article focuses In attempting to ideny bubbles before they burst, economists have developed a number of fncial ratios and economic indicators that can be used to evaluate whether homes in a given arfairly valued or not. By comparing current levels to vious levels that have proven unsustainable in the st (i.e. led to or at least accompanied crashes), one can make ducated guess as to whether a given real estate market is encing a bubble or not.