The housing bubble: myths and beliefs around real estate
By Jean-Michel Pouré
According to popular belief, investing in real estate is a risk free investment.
In some countries, real estate prices are rising sharply. Everywhere, we justify the rise in property prices for economic and social reasons: lack of space and land, demand for spacious housing, low production of new housing, increased foreign investment, increase in the number of divorces. In the minds of the general public, the rise in real estate prices has become so commonplace that it is now taboo to consider lowering prices.
Our study goes against habits, highlighting a start of crash real estate markets. A full and detailed argument supports our opinion. We provide economic data and a complete bibliography, so that each reader can form his own opinion.
The study was written in French and relies mainly on the example of the explosion of the housing bubble in France. The study is also available in English, so you can draw parallels with the real estate market in your country.