1. bookVolume 22 (2014): Issue 1 (March 2014)
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16 May 2013
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access type Open Access

Price Bubble In The Real Estate Market - Behavioral Aspects

Published Online: 12 Apr 2014
Page range: 77 - 90
Journal Details
License
Format
Journal
First Published
16 May 2013
Publication timeframe
4 times per year
Languages
English

The article pertains to the topic of speculative price bubbles which arise in the real estate market. The individual parts of the article deal with the connection between the price bubble in the American real estate market and the global economic crisis, defining the concept of a price bubble with regard to the behaviors of market participants, providing a description of the environment generating price bubbles, and systematizing the reasons behind the formation of price bubbles. The analysis of behavioral aspects accompanying the existence of a price bubble is a key issue. The assumed considerations indicate that the housing price bubble could not exist in the real estate market (REM) if its formation was not accompanied by behavioral aspects. These aspects include, among others, giving in to temptations and emotions, limited rationalism, herd behavior, and seeking to make profits in a short amount of time at the expense of long-term negative consequences. The nature of these deliberations is theoretical.

Keywords

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