Real Estate Bubble Burst Research Paper

Real Estate Bubble Burst Research Paper
2017 Might Be an Unforgiving Year
The Burst Bubble
It's been about ten years since the real estate bubble burst. Many Americans were left owing more on their mortgages than their homes were worth. As
many as could do so negotiated mortgage modification plans with their lenders. The result of the modifications, or refinancing, resulted in lower
amounts needed to pay off mortgages.
Those homeowners who couldn't come to agreement with their lenders suffered through foreclosures or short sales. Unfortunately for them, the value
of their homes remained less than the amounts they owed, so they still owed money unless their lenders were then willing to make modifications.
Modifications meant that people didn't have to pay back the full amount
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Environmental Analysis of Starbucks
The impact of interest rate increasing on real estate market Generally, the increasing of the bank's interest rate has crowding–out effect on the asset
bubble. But how does interest rate affect the real estate market? We can analyze the effect of interest rate increasing on different market entities from
micro–perspective.
FOR ONE THAT HAVING BOUGHT THE HOUSE: Monthly payment increases and the assets may shrink. Most of the housing mortgage loan is
floating interest rate now. According to the rules, if the interest rate increases, the mortgage loan contract which has been signed will use the new
interest rate since the January 1st next year. Assuming the owner has bought areal estate at a price of 1million RMB by using a 30–year, ... Show more
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In the short run, the demand of the house inventory will fall.
FOR DEVELOPER: the interest rate of construction loan increases, the expected price changes. A. It will decrease the investment scale. For a real
estate developer, if it want to develop a project, it should own some self–owned capital to develop, and in order to improve the efficiency of the capital,
it will get some construction loan from the bank.. And as the interest rate increases, the cost of the capital increases. And the developer has been
calculated this cost into the cost of management. If the sale price unchanged, the profit of the developer falls, and the return on assets follows to
decrease. When the objective return equal or even lower than other industries, to some middle and small entities with high debt ratio, single financing
ways and high management cost may choose to quit, and switch to other industry. Some may go bankruptcy. To some big entities, they may cut their
investment scale on real estate and increase their investment on other industry of high return so that they can maintain the previous return on assets.
And on the other hand, they will shift this management cost to the sales price of the house, so the consumption will burden this cost increasing, and
they will get little impact. B. It will decrease the number of the real estate developers. Most of the developers achieve the indirect financing by loan
from bank.. So

The Real Estate Bubble Crisis
From the late 1990's to mid–2000's the United States experienced an unprecedented run up of real estate prices across the country that reached a
peaked in 2006, in some areas up to an eighty percent increase. After the increase in prices, there was a sudden collapse of real estate prices in 2008,
brought on by a surge in foreclosures, and an increasing inventory of housing.1 Foreclosure increases came from an unprecedented rise in mortgages
called, subprime mortgages. These risky subprime mortgages, and the cottage industry within the financial sector that profited from them, created an
overly leveraged and over exposed finance industry that created a massive recession when the bubble popped. In this essay, we will look into the many
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Foreign investors starving for fixed income securities that also had returns better than government securities, decided to invest in mortgage back
securities provided by Fannie Mae and Freddie Mac. In order to take advantage of the savings glut Wall Street firms began to package many of these
sub–prime mortgages together and create what was known as a mortgage backed security.1 A mortgage backed security, was an asset backed
security that was secured by a collection of upwards a several hundred mortgages. The issue was the mortgage back securities provided by Fannie,
Freddie, and investment banks were given good ratings by rating agencies such as Standard and Poor's and Moody's, even though these assets were
toxic. They gave the mortgage back securities good ratings, because their risk assessment models solely used previous housing data, and did not
include any possibility of a fall in housing prices.3 As a result, overseas investors believed they were getting secure assets with above average returns,
but instead they were getting very toxic assets instead. So the interest in these mortgage back securities continued the flood of savings, continuing the
suppression of interest rates and maintained the status quo.2 Banks lent out these sub–prime mortgages at a prolific rate because even if the borrower
foreclosed, banks were still able to make a profit, as they resold a higher priced house. Another form of easy credit came from the historically low
short term rates

Housing Bubble
According to Wikipedia a housing bubble is a type of economic bubble that occurs periodically in local or global real estate markets. It is
characterized by rapid increases in valuations of real property such as housing until they reach unsustainable levels and then decline. Four years into
the housing bubble downturn, much of the country remains hopelessly confused about what happened, why it happened and who is to blame. In my
research paper I will try and demonstrate what a housing bubble is, some of the reasons for the bubble, was it preventable, how it kept growing, how it
burst and how it has affected our economy. By definition a housing bubble is a temporary condition caused by unjustified speculation in the housing...
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Other scholars have emphasized the sharp deterioration in lending standards as contributing to the rise in housing prices as well as the importance of
changes to the mortgage market institutional structure. Other explanations of the bubble have been demand side explanations, meaning that the bubble
was caused by excessive consumer demand for housing. One leading explanation argues that the bubble was the result of irrational demand encouraged
by a belief that housing prices could only move upwards. Other research points to the fundamentals of housing markets, particularly population growth,
placing upward pressures on housing prices in markets with inelastic housing supply, thereby explaining some of the geographic variation in the
housing bubble. None of these explanations, however, is capable of fully explaining the housing bubble. From 1997 to 2006 nominal U.S. housing
prices rose 188%. By mid–2009, however, housing prices had fallen by 33% from peak. As the United States attempts to rebuild its housing п¬Ѓnance
system, it is of paramount importance to understand what caused the housing bubble. Until we understand how and why the housing bubble occurred,
we cannot be certain that a reconstructed housing п¬Ѓnance system will not again produce such a devastating bubble. As you can see there are
numerous theories and explanations for the bubble. Without getting too deep

Kenyan Real Estate Bubble
Is there a real estate bubble in Kenya?
Recently in the Standard Edition, a report by the Central Bank and World Bank said that only eight per cent of Kenyans – 320, 000 households – can
afford a mortgage and that nine out of ten Kenyans cannot afford to buy the houses they live in, even with a mortgage loan in tow. The report also
indicated that for one to buy a house worth Sh2 million, for example, one must have a net salary of Sh100,000 and service the loan at Sh42,000 a
month for a period of 15 years at an interest rate of 14.5 per cent. This came as shock since, although the total mortgage loan book in the country is
approx. 16,000 accounts, the value of mortgage loans (as at the end of last year) totaled Sh.133.6billion. This can be ... Show more content on
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The increasing real estate growth has mainly been driven by a strong economy, urbanization and growing middle–class. The stabilizing legal
environment, considerable credit expansion and increased spending on infrastructure by government have also contributed to the growth.
Nevertheless, the market faced difficulties in 2011 due to high cost of land, high inflation, a weak shilling, ,and cases of fraud which led to loss of
purchased land to various individuals. The high inflation last year caused precipitous import prices. Consequently, the shilling weakened, falling to a
historic low of 107 to the dollar in October. Therefore, the cost of construction materials rose by about 40% and forced property developers to spend
more on projects. This hurt the property market and has prompted commercial banks to cut lending, fearing a slowdown in the uptake of properties
especially in the up–market segment. Below are a few charts and graphs on prices for property for sale and average rent, courtesy of HassConsult . The
Hass Composite sales Index is representative of all property for sale in Kenya. Property values have increased by 3.31

Critical Thinking Case Analysis
As a real estate agent this is a question I hear a lot. It is natural that homeowners want to know how much their home is worth and most renters want
to work out if they can afford a home or if they are better off renting. So what is the answer to this popular question? If you watch the news or you
have asked friends and family you may have heard these replies, "The market is hot"
"Oh yeah, It's a seller's market"
"It's just crazy right now"
"Well I don't think it's a bubble" While all of these answers all may have some truth to them, they don't really explain a whole lot. Let's see if we can't
break down the real estate market just a little more. Right now as we speak there is low inventory across the metro area. While things have picked
up slightly in the last few weeks, compared to this time four years ago we are seeing some of the lowest numbers of houses on the market in
decades. There is just not a whole lot to choose from if you are a buyer. This is especially true if you are looking for a home under $400,000. In fact,
right now any home around or under $350,000 is likely to get snapped up within a few days of appearing on the market. ... Show more content on
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Homes right around or below these price points are a hot commodity and will likely have multiple offers thrown at them, at long as the house is priced

The Role Of Production And Employment On Australia 's Economy
Part A The roles of production and employment in Australia's economy is crucial as they are in an interrelationship with all sectors and this is the
basis of how money and resources are distributed throughout a country. This is because employees help make the goods and services which we as
consumers use and then they get paid to do so but then the employees buy these goods and services with the money which they earned. Not only do
workers help one another via supplying each other with money and resources but they also help the Government's budget by giving them their taxation
income. With this money, the Government can then use it to support the people of the nation by providing benefits such as welfare benefits and public
services. All... Show more content on Helpwriting.net ...
The video game crash peaked at around 3.2 billion dollars in 1983 and then fell to approximately 100 millions dollars by 1985 and this caused one of
the major companies of the time (Atari) going from 10,000 employees in Silicon valley to less than a thousand in six months. Some of the key sectors
in Australia is retail, fishing, education and training, construction and transport. In 2016, the retail market in Australia is currently in a downfall state
with self–service checkouts taking over human workers due to them having a better return on investment whereas in the 1990s, it was a flourishing
and rising employer due to the increases in the amount of shops being opened and because there were more spenders. This is shown by retail trades'
employment increase of approximately 18% from 1989–1999. Another example is in the transport sector; this sector is on the brink of being taken
over by artificial intelligence (self–driving vehicles) within the next few years. Currently, there are already some cars on the road which are fully
automated such as Google's self–driving car which can drive relatively safely as shown in the many test trials for the car. Meanwhile, in the 1990s it
was a fully manual service with human drivers driving the car; it was also a increasing employer (from 1989–1999 it increased

Real Estate Industry In The Rental Market Essay
Real Estate Industry in the Rental Market
Abstract
"Real estate is land, all of the natural parts of land such as trees and water, and all permanently attached improvements such as fences and buildings.
People use real estate for a wide variety of purposes, including retailing, offices, manufacturing, housing, ranching, farming, recreation, worship, and
entertainment." (Answers.com) In order to more specifically focus on a specific area of real estate this discussion will deal with the housing industry of
real estate. In this discussion, when housing is analyzed it will be in the realm of rental real estate.
Uses of Land Like with any other commodity or resource the market for rental property is affected by supply and demand. ... Show more content on
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In interviewing real estate owner Thomas Seeley it became evident that one of the most important decisions prior to purchasing a rental property
was the cost of purchase along with the cost of bringing the property up to code weighed against the amount of rent that could be charged for the
property. Thomas Seeley explained, "I am always looking for a property in major disrepair because the amount of resources it takes for my
company to bring the property within acceptable housing codes is often justified by the amount of time it takes to pay for these repairs with the
rents that are collected." (Seeley) Even in the most difficult times of the real estate market which shows signs of recession it appears that the rental
market is not affected in the same way. "There are many uses of land, and how much land is allocated to each use depends on the demand for and
supply of land for each use." (Microeconomics 403) With the recent increase in private home foreclosures many individuals and families seek to find a
quick solution to the need for a place to live.
Recession and Families Facing

The Crisis On The Real Estate Market
House bubble situation on the real estate market is presented by condition when there are low supply and high demand at the same time, which causes
shortage on the market. (Yoshino, Nakamura and Sakai, 2013). Moreover, house price bubble is always associated with speculators who are buying
houses with the goal to resell it in the short term. These conditions appeared on London real estate market and caused В«Bubble TroubleВ». This essay
will discuss main causes of the bubble, matters of its bursting and danger, connected with bursting.
Very high indexes of demand in London are mostly caused by several components, such as: desirability of London, job opportunities and real estate
market seen as investment.
London is considered to be one of the most desirable cities to work and live in (Kollewe, 2014). One of the reasons of this indicator is connected with
В«best jobs and economic opportunities". (Chakrabortty, 2014). Moreover, people want to move to London, considering В«high salary prospects,
public healthcare and cultural diversity". Vast majority of foreigners (65 percent) consider buyingproperty in London as investment (Statista, 2013),
without goal to let for rent or live there (BNP Paribas real estate guide to investing in London, 2013). This is the most popular В«alternativeВ»
investment. (Gardina, 2010), which allows diversification of portfolio and spreads risk in the long term. (Mattson–Teig, 2014). This increasing percent
of not–to–rent type of property causes lack of

Essay about The Chinese Bubble
Agenda
1. Introduction ............................................................................................................................ 2
2. The Chinese Property Market................................................................................................. 3
3. Chinese Housing Bubble 2005–2011...................................................................................... 3
4. Development of Ghost Cities ................................................................................................. 5
5. Current Situation of the Housing Market ............................................................................... 8
6. Conclusion ... Show more content on Helpwriting.net ...
As China measures its GDP in what is built, unlike the US, which measures what is bought and sold, high GDP targets pressure China's property
market (Editors, 2013). To reach GDP targets, party officials were evaluated on their contribution to the GDP growth. This put local governments under
pressure and encouraged overinvestment and rising housing prices (Guilford, 2013). Overinvestment in the housing market lead to increase of property
building, which in turn lead to job creation but also the development of plenty of uninhabited cities. The reason for those cities remaining empty is the
great inefficiency in China's housing market. In the metropolises of China, housing prices are very high and for the most people just not affordable.
According to a study by Credit
Suisse (Figure 5) the top five most expensive cities, measured by the IMF house price to wage ratio, are located in China, Beijing being the most
expensive. This creates huge disparities in
China's society, as on the one hand people can barely afford space to live and have to share rooms with several people in the Hutongs, whereas plenty
apartments remain unoccupied, as their rental or selling prices are too high for the average Chinese citizen.
3. Chinese Housing Bubble 2005–2011
In the years 2005 until 2011, the housing prices have risen tremendously in the Chinese real estate market (Figure 3).

Looking At Commercial Real Estate
Is it better for an investor to rent or buy commercial real estate in 2016?
Investors looking at commercial real estate (CRE) this year and wondering whether to lease or buy should consider a few factors first.
And then, if they have the access to adequate capital, they should buy.
We'll look at the reasons why in a bit, but first let's look at why not to lease.
Little Upside to Leasing
Leasing in 2016 will be less attractive than in recent years. Vacancy rates for office, warehouse/industrial and retail space will stay low or drop this
year, signifying a more competitive marketplace for commercial renters. Meanwhile, rental rates are expected to continue increasing, albeit at slower
rates than in 2015, with the current year showing ... Show more content on Helpwriting.net ...
Moreover, by purchasing commercial property, an investor gains an asset that will continue to increase in value rather–better than a lease dragging on
the bottom line. The Price is Right
In good news to potential buyers, economists expect real estate prices to, after a three–year period of extreme growth, slow down substantially
beginning in 2016. For the first time since 2009 the Moody's/RCA Commercial Property Price Index (CPPI) is dropping "below the long–term
average growth rate of 5.8 %." The CPPI will continue to grow "at very subdued and slowing rates": 5 percent in 2016 (down from 12.7 percent in
2015), 2.7 percent in 2017, and 3 percent in 2018.
What this data shows is that not only is the moment ripe for buying CRE, but also that properties will continue to increase in value over the next
couple of years, just more slowly. For an investor looking at a secure product with long–term potential, CRE is a vehicle with promise.
However, there are some reasons for investors to be cautious about purchasing.
Less Available Cash

Paralleling the drop in price growth, this year marks the first time since 2009 that the "issuance of commercial mortgage–backed securities (CMBS), a
key source of funding for commercial real estate," is decreasing, from $101 billion in 2015 sharply to $85 billion. However, the drop is only
temporary, with issuance

The Great Financial Crisis : Causes And Consequences
BOOK REVIEW: Foster, J. B., & Magdoff, F. (2009). The great financial crisis: Causes and consequences. New York: Monthly Review Press.
Cesar Becerra
POLS 3394
04/15/2016
"The Great Financial Crisis: Causes and Consequences" By John Bellamy Foster and Fred Magdoff Monthly Review Press, 2009, 160 pages
Introduction
John Bellamy Foster is the editor of the Monthly Review, a professor of sociology at the University of Oregon and the author of many books, including
"The Theory of Naked Capitalism". Co–author Fred Magdoff taught at the University of Vermont in Burlington, is a director of the Monthly Review
Foundation, and has written on political economy for a majority of his career. In "The Great Financial Crisis: Causes and Consequences", Foster and
Magdoff present a rigorous and undoubtedly necessary historical and broad–minded perspective of the capitalist system out of control.
They argue that the present–day financial collapse is a logical consequence of the contradictions of monopoly finance capital – contradictions that are
reflected in the like processes of financialization and stagnation that have dominated the development of the U. S. economy in the recent decades.
These political scientists present convincing evidence that the financial crisis of '08, with analytical predictions of 2009 and the years that follow, is
one of the great catastrophes of modern neoliberal capitalism.
Thesis and Structure
According to the mainstream media, the financial crisis and the

Reasons For The Housing Bubble
Introduction Housing bubble is basically a phenomenal increase in the real estate prices in local or global markets to a point, where these prices are
not sustainable and hence eventually decline abruptly. One of the most detrimental housing bubbles that we have witnessed was the U.S housing
bubble, which was one of major reasons which led to the recession in the USA during 2007–2009. This bubble can be indicated by the fact that
nominal housing prices had increased by 188% from the year 1997 to the year 2006, and then again fallen by 33% by the year 2009 (as per the S&P
/Case–Shiller 20 City Composite Home Price Index). There have been numerous explanations given by various authors and economists regarding the
causes of the U.S... Show more content on Helpwriting.net ...
Another reason which can be associated with the emergence of housing bubble has been the lowering down of lending standards by the financial
institutions, which led to mortgage lending being offered to less credit worthy customers. Further, another significant factor which contributed to the
U.S housing bubble were the affordable lending policies adopted by the government in the early 1990s which encouraged or rather forced the lending
institutions to offer credit exposure to the communities and neighbourhoods with low and moderate incomes. Therefore, one can notice that there are
varied opinions and views amongst economists regarding the causes of the housing bubble in USA and thus it becomes imperative to analyse those
opinions further in order to arrive at the most important cause (or causes) behind the U.S housing bubble. So, in my research, I am going to
investigate these causes extensively and put forward my analysis about how this housing bubble was created, how it increased to unsustainable levels,
the effects of the bursting of this bubble and finally if and how it could have been avoided. Literature Review During my quest for this research study,
I was introduced to various thoughts, ideas and studies which further helped me to do an in depth analysis of the topic. Many literatures have been
studied by me as part of

ChinaвЂ™s Real-Estate Bubble Essay
China's Real–Estate Bubble
China is one of the major economical players in today's international market. China's economy is the "seconds largest in the world after the United
States" (Joseph, 63). This is a striking achievement due to fact that China is a "developing country". China has achieved a great amount of success
through the collaboration of political and economical regimes. The economical growth in China led to "one of the biggest improvements in human
welfare anywhere at anytime" (Kristof, 15). Currently, China is experiencing a real–estate bubble. This eventually will hit a climax, disrupting the
real–estate market within China. This real estate bubble that China is undergoing is considered one of the "biggest housing ... Show more content on
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In an attempt to stimulate the economy Chinese authorities allowed a stimulus package dealing with the real–estate sector of the economy. Chinas
massive monetary stimulus package seems to "risks triggering large asset–price increases, a housing bubble, and bad debts from the financing of
local–government projects" (Leung, China Must Pare Stimulus). According to Barclays China has four factors supporting its property growth "strong
income growth, urbanization, home upgrading and favorable demographic change, limited investment alternatives, households' strong balance sheets".
This provides a good base to withstand the real–estate bubble's burst.
Today globalization has an impact on all nations. China is a nation that many rely heavily on. This shows an importance with the economical welfare
of China. If China has a downturn in its economy other nations are impacted as well. China contributed "19% of the world's economic growth in
2010, and that's expected to increase to 24% this year" (Miller, What If the China Bubble Bursts?). This depicts the impact that china could have on
the economical growth of the world. Due to the economical situations within the United States and Europe, China's growing strength is essential for
the recovery of U.S. and Europe. A major issue is "if Chinese land prices plummet, there will be less demand for raw materials and a steep decline in
world commodity markets and

The Real Estate Market Of 2008 Is Notorious For Sparking...
The real estate market in 2008 is notorious for sparking one of the largest housing bubbles in history. In order to understand the housing market during
the bubble you need to recognize the events that caused it. This was simply an economical failure from the hands of some of the most well–known
financial institutions and the Government. Going back to 1997 to 2006, if you take a look at the Case–Shiller Home Price Index (the leading indicator
for the US housing market residential prices), you will discover a rise in nominal home prices of 188%. Although there is not a lot of consensus that
uncovers what sparked the housing bubble, countless people have spoken their opinion in regards to this: misguided monetary policy; government
policies pushing home ownership, consumer speculation of rising home prices, and lower housing supply. These examples can't fully explain the
crash, but they can provide insight as to what may have happened or at least contributed to it. This article goes into depth on some of the explanations
to the housing bubble and how the burst of it eventually led to the credit crisis which sparked the entire recession in 2008. Starting back in 1997 when
the residential prices began to appreciate into 2003, the rising home prices can be examined through economic fundamentals. These fundamentals
explain the price of buying a home in relation to rentals and interest rates – meaning that the housing market was not overvalued. Post 2003–2004, the

Rapid Growth Of The Real Estate Sector
In the past fourteen years Lebanon have witnessed a rapid growth in the real estate sector, which raised the prices of the apartments by 560% from
the year 2000 till year 2010 which recorded a peak in the prices in this sector, to stabilize on this prices till recent time. A slight decrease in this
prices was registered in year 2006 because of the Israeli aggression , and in the year 2008 due to "7th of may" incidence , but after each incidence
causes a decrease in prices a remarkable increase is recorded, not just to the past value but more. This raise of prices , minimizes the opportunity of
new families to buy houses to start a new life in. Even if this families decided to rent a house instead of owning them, they would not be able to
have one with low rent price, since the Syrian crisis force Syrian people to immigrate towards the Lebanese area. Surely the Syrian people would
rent houses instead of buying ones, since they are expecting to go back to their country in the near future. That fact raised also the renting prices.
The Lebanese government tried to help its people by offering loans on long term with low interest , also it stimulates the banks to offer citizens such
loans by pumping money towards it with low interests also. But upon observing the arbitrage of the Lebanese government , and the percentage of
defect, we can conclude clearly that a problem will occur in the near future , either by the stoppage of loans , or by the near collapse of this sector ,

The Problem Of Ghost Cities
The most populous country in the world is constructing houses, districts, and cities with no one in them. Ghost cities is probably the wrong word to
describe these unoccupied cities. Since Ghost cities/towns typically mean people have completely abandon the city/town. These cities have yet to be
lived in. Many people in the financial world are nervously looking at China. They are building 12–24 new cities each year. The concept they have is to
build now and sell later. The assumption is if you built it they come, but no one is coming. Other city housing markets follow the supply and
demand rule, but in China the prices stay high. Kenneth Rapoza (2015) stated in the Forbes article, "Anyone can build a useless overpass, but it
takes China to build a city for a million people with no buyers in sight." China has constructed a fake Paris, just South of Shanghai. The
impressiveness of this replica of Paris is not only an expensive knock off, but that it has been completely abandon. Basically, tourist only come here
for wedding pictures and curiosity seeking. This fake Paris isn't the only city that has a 2% occupancy rate or lower. Thames town that was built like
an English village, finished about 5–6 years ago is still standing and completely empty. Not to mention that it cost close to a billion in U.S. dollars.
These replica cities are just one of the many marketing strategies of China's real estate. Another example of how they reel in potential buyers, by putting
up the

The Collapse of the Domino --- Chinese Real Estate
With the outbreak of the U.S. financial crisis in 2008, the whole world's financial situation is not good, but except one, which is China. However,
many people find out that China is walking on the old U.S. economic way, which means China will have economic crisis either. So right now, all the
eyes from all the countries are watching at China's economy, because if Chinese economic collapse, there are no more people buy Japanese
animations and European luxuries. And after the economic crisis, China will recovery U.S. Treasury bonds, but American unable to pay, then the
whole world economy is facing collapse; we can call that butterfly effect. So right now, in this context, the same conditions, and the same nature of the
Chinese economy grows up, any black swan events are likely to be the fuse of Chinese financial crisis, and even the world economic crisis' fuse. For
example, the author of "Chinese Citizens Have Their Eyes on Bubble," C. Cindy Fan mentions that the fuse of Chinese economic crisis is real estate.
Right now, Chinese people put all their savings into real estate, which led to the housing bubble, but because of consumer demand, the government is
unable to stop it. (Fan) I agree with Fan's idea, which is Chinese economy will collapse because of Chinese real estate bubble.
Consequently, whether China will have the financial crisis, the focus should be on the how big is the China's real estate bubble, and when will it
burst. As for how big is the China's real

A Study On Finance And Commerce
Your edited/ enhanced document (with track changes)
Because of my eager and fascination for accounting, finance and commerce, I have directed my studies towards developing a career in this field. I
believe my career goals, my current skill set and the MPhil program curriculum, are very closely aligned. I majored in Accounting and minored in
Finance as an undergraduate at Nanjing University, and I would now like to focus onreal estate finance.
My academic interests, which focus specifically on financial theory and quantitative techniques, arise from my undergraduate studies. I am specifically
interested in conducting research on securities pricing in financial markets and using mathematics to conduct mean–variance analysis generating
optimal investment outcomes. My academic interests also encompass bonds and how the bond markets operate. I'm also interested in the application of
mathematics and economics to finance, through optimization techniques in portfolio management. My curiosity drives me to continually consider
possible avenues of research like Capital Asset Pricing Model, that strikes me as unsatisfactory and too theoretical for investors because of the
assumptions on which it is based. Therefore, I have considered establishing a more realistic model to evaluate the relationship between risk and
equilibrium return on assets.
In addition to my academic interests, I have also developed a collaboratively effective work style. During my internship as an auditor at BDO

How Chinese Real Estate Companies Operate And Its...
How Chinese real estate companies operate and its influences of overheated price
It is no doubt that the recent years' booming house prices in China is an unnatural growth of a market. As such a big country, China requires more than
one factor to make such a huge impact on its own housing market and further the country's economy as a whole. It is hard to say what phenomenon or
policy has triggered the skyrocketing real estate market price, it is more likely a little bit of everything in China are involved into the cause of bubble
real estate market. In the majority of the cities, the growth rate of house price is way faster than the growth rate of disposable income. Housing prices'
growth rate this high took place in China ... Show more content on Helpwriting.net ...
In the year around 2004 to 2009, the Chinese government tried to stimulate the economy by lower the interest rate. According to the data shown in
the World Bank website, the real interest rate in China was extremely low when compare to other countries. The real interest rate is even negative in
the year of 2007 and 2008. With this much of the interest rate being held nationwide, people were not satisfying by put money in the bank. Due to the
cultural conservative thought against the house property, Chinese people are more likely to spend a large share of money of their disposable income
to purchase a real estate. As real estate purchase has become the first choice of spending their income, it bids up the demand for the house market in
China and further led the price of real estate increases. Besides that, Chinese government tries to stimulate the economy by letting the banks to

Housing Market And The Housing Crisis
It has been 7 years since the housing bubble burst and the financial systems collapsed back in 2008. Since then, some will say that the housing
market, as a majority, has healed and regained footing but is that entirely accurate? It has been an up and down rollercoaster since the collapse of
2008, however the housing market has only started to recover within the past 2 years. "Right now, I would say we are 64% back to normal and a
lot of what is driving the housing market's strength is existing home sales, but prices have also helped push the recovery" (Jed Kolko, Trulia). As
stated in the first paper, the housing bubble burst because of the increase in interest rates that put homeownership out of reach for some buyers. This
ultimately caused homes to become unaffordable, leading to defaults, foreclosures, and short sales. More so, on December 30, 2008, the home price
index reported the largest dip in home prices ever recorded, losing 33% from its 2006 peak to 2012. This financial crisis, unanticipated by most,
caused the United States to go into a recession and has been known to be most significant risk to our economy. It was the beginning of last decade,
2000, when real estate prices rose at an unprecedented rate, subsequently leading to the bursting of the housing bubble starting in 2006.
Once real estate took a staggering dip, the crash proceeded after. Prime, subprime, collateralized debt obligation (CDO), mortgage, credit, hedge fund,
and foreign bank markets were all

The Financial Crisis Of 2008 Hit The American Economy
The financial crisis of 2008 hit the American economy and the world economy as well. It cost tens of millions of people their savings, jobs, and their
homes. For decades the American financial system was stable and safe, but it changed. The financial industry turned its back on society; it corrupted
the political system, and plunged the world economy into crisis. It was not an accident; it was caused by an out of control industry, a greedy industry.
The crisis has made more damage to society while the industry has made more money. The residentialmortgage crisis affected commercial real estate
by making credit much more difficult to get. Real estate investment has been driven by leverage. One of the great things about real estate investment is
that you do not need just cash to do it. The possible investors are either reluctant to acquire and develop real estate without the need of debt. As a result,
the demand for real estate slowed and prices fell down. To understand better how everything started, let's mention the great depression. After the Great
Depression, the United States had forty years of economic growth without a single financial crisis. The financial system was regulated, and most of the
banks were local. They were prohibited from speculating depositor's savings. Investments banks were small private partnerships in charge of handling
stock and trading. The private partnerships partners put their own money up as their investments; therefore they didn't risk as

Real Estate And Mortgage Meltdown Analysis
The real estate and mortgage meltdown several years ago taught Americans many financial lessons. The first lesson learned after the meltdown is to
not allow home buyers to borrow loans worth more than the value of their home. The second lesson is to not allow home buyers to qualify for larger
loans based on a lower monthly payment obtained by the use of a variable interest rate loan. The third lesson is to require home buyers to have at least
a five percent down payment on their home. The fourth lesson is to not let money be so easily available to people unlikely to pay back the loan.
Before 2008, Americans were comfortable taking out loans that were worth more than their home. If their house was worth $100,000 they would
qualify for ... Show more content on Helpwriting.net ...
They were taking on large payments without working towards the bill. This process left many people with large payments on their new homes after
the economy collapse. After the meltdown, buyers began putting around five or ten percent down on their new home. This made it more likely for the
new home owner to pay off their mortgage because they had more ownership in the property and more to lose. Money is much harder to get now
because lenders look at a person's debt. They also do not give one hundred percent of what the house costs. Buyers now have to double check the
money aspect of purchasing a home. They cannot rely solely on a loan to pay for their home, they have to make sure they can afford the payments.
This does not eliminate buyers from making poor decisions, but it does help some. Demand for houses went up before the crash because money was
easier to get. With loans being lent out to almost anyone, more people were able to buy homes. This affected the price of houses. Housing prices went
up because the supply of housing could not keep up with the demand. Builders were building homes as quick as they could, but they could not keep up
with the demand of

The Impact Of U.s. Economy On The Housing Crisis
In 2008, the National Bureau of Economic Research publicized that the U.S. Economy had entered into a recession. The overall agreement of what
was the primary cause of this recession was the credit crisis from the bursting of the housing bubble. This lead the U.S. into the worst recession in over
sixty years (Holt).
The decade before the 2008 crisis, showed the development of a key factor that would later contribute to the crisis. It was the dramatic increase in
aggregate households' indebtedness that had become so severe in the United States. This large growth in household indebtedness was a direct result in
large by the significant and sustained expansion in residential mortgage lending. With the growth in the residential mortgage ... Show more content on
Helpwriting.net ...
Another economist by the name of Thomas Sowell stressed that the government's role in creating the housing bubble. With the housing markets that
had the largest home price increases were often markets that the local government had forced land use restrictions on the amount of land available for
housing. Having relaxed mortgage lending standards were mainly the result of being government influenced (Russo). During the 2008 recession, the
Federal Housing Administration increased its insurance activity to keep money flowing into the market. Without this government agency's backing, it
would have been much more challenging for the middle class to get a home loan from the start of the recession (Griffith). A few large financial firms
experienced financial stress during the 2008 Recession and in response, the Federal Reserve provided the liquidity and support through a variety of
programs motivated to help the functions of financial markets and institutions, and in effect limit the damage done to the U.S. economy. The Federal
Reserve had provided record amounts of monetary accommodation in response to the severity of the reduction and the gradual return of the ensuing
recovery. Finally, the financial crisis caused major reforms in banking and financial regulation, which included congressional legislation that
significantly affected the Federal Reserve. One example is the

Housing Bubble Research Paper
There are several long–term factors that could cause the housing bubble in Australia. One important factor is the financial deregulation. The financial
system was experienced a deregulation, resulting in the removal of different kinds of government policies concerning the lending financial institutions.
Meanwhile, an increasing number of new institutions, such as foreign banks, originators, mortgage brokers. New capital of finance for housing purchase
would move in the market in the residential market due to the situation. Another factor is the land supply and the land–use planning system. Land price
might be affected by the supply of developed urban land. The rules and effectiveness of the land–use planning system where was established ... Show
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The Housing Industry Association of Australia (HIA) (Housing Industry Association, 2003, p. 14) estimates that, in the case of new housing, "the total
indirect tax take is over $124,000 in Sydney and $88,000 in Melbourne". In order to reduce the rate of house price inflation, the government was
requested to reduce the current levels of charges. Owing to a number of interacting forces determining housing prices are unlikely to have the desired
impact. What is more, the rising population in Australia results in the growth in the number of households, the main unit of demand in housing
markets. Due to Immigration of other countries, this has been a fundamental factor of housing developments and price inflation in some areas over the
long term. With the growth of economy and improvement of living standards, Australians are able to afford the house, leading to the price rise. It is
likely that house price inflation can occur on some areas where the average incomes of individuals increased. In almost all societies, housing in behalf
of the main family fortunes. When the value of existing house rise, the house owners and real estate companies would be confident to sell house with
raising the housing

Why Buyers Should Not Consider Purchasing A Home
After increasing my own financial awareness and witnessing the financial journeys of others during the past recession, I find that boomerang buyers
should not consider purchasing a home as their sole financial investment. Mortgages with ballooning payments mixed with hopes of future refinancing
are a dangerous combination. These factors precipitated the last housing bubble and the eventual recession period. In order to learn from past
behavior, home buyers should ensure that they habitually save for a "rainy day fund" because financial rainy days have proven to be cyclical.
Purchasing a home should be a process that results in a buyer feeling comfortable with the home they choose versus simply selecting the largest
mortgage for which they ... Show more content on Helpwriting.net ...
For example, Arizona's metropolitan cities of Mesa, Phoenix and Scottsdale are considered areas within the United States that have made the best
recoveries since the 2006 crash. In July of this year, Michael Orr, the Director of the Center for Real Estate Theory and Practice, stated that "In the past
two months the number of building permits in the $200,000 to $500,000 range has increased," but this does not mean that Arizona's metropolitan
housing markets are completely in the clear. Home buyers are encountering steep competition when looking to purchase affordable homes. According to
Realtor.com's Advance Read of September Trend, the 2015 housing market has turned into a "buyer's market." U.S. Housing Sector Shifts to Buyers
Markets in September author Miho Favela highlighted three key statistics supporting Realtor.com's claims:
National median list price is $230,000 down decreased 1 percent over August and up 6 percent year–over–year.
Median age of inventory is now 80 days, up 6.7 percent from August, but down 5 percent year–over–year, reflecting the seasonal trend for fall listings
to stay longer on the market as the day becomes shorter.
Listings inventory will likely end the month down 0.5 percent from August. By the end of 2006, over 1.25 million foreclosures occurred. The bureau of
Economic Analysis and Census Bureau listed a timeline of residential investment, permits, and residential

The Cities Of Ghost Cities
The most populated country in the world is constructing cities with no one in them. Journalist refers to these cities as ghost cities. Ghost cities have a
completely built out infrastructure with no one living in them. Many people in the financial world are nervously looking at China. They are building
12–24 small to large cities each year. The concept is to build now and sell later. The assumption is if you built it they will come, but no one is
coming. Other city housing markets follow the supply and demand rule, but in China, the prices stay high. Kenneth Rapoza (2015) stated in the
Forbes article, "Anyone can build a useless overpass, but it takes China to build a city for a million people with no buyers in sight." China has... Show
The Chinese government is implementing methods to bring interest to the cities by moving universities, stated owned enterprises, state owned
businesses and banks to jumpstart the ghost cities. Paris and Thames only account for two of the eleven massive vacant cities that have less than 5%
occupancy. On CBS News Lesley Stahl (2014) stated that, "this is all make believe, non existent supply for non existent demand." There are an
estimated six hundred more cities in China than there were when the communist party took over in 1949. China has topped the phrase, "Bridge to no
where." Quoted by Kenneth Rapoza (2015) in his Forbes article. Ten years ago in the Kangbashi district, there was nothing but rolling grasslands.
Then in 2004, they built another colossal city that cost an estimated five billion USD. It was designed to house one million people. Today, it has a
population of only 30,000. Another one of the downsides of China building these colossal cities is having to bulldoze the grasslands and moving the
native people off their land. Local governments are then seizing the land, demolishing the homes, and constructing more high–end real estate the native
population cannot afford. It is a transfer of wealth and the number is estimated as much as $5 trillion U.S. dollars. Those who did not cooperate of the
relocation were arrested in the traditional Chinese way. The moto was, "Better City, Better life." Which was a complete bust and resulted in too many
abandon

The Success Of The Great Recession
The Great Recession began in December 2007 and officially ended in June 2009 while many macroeconomic forces were at fault, the primary cause
was securitizations of debt. While debt is an important part of any economy, allowing for the financing of business activities, the purchase of homes,
and continuing education, there is also an inherent risk in the system. Most debt is issued in with fixed rate interest, though during the 1970 's a new
instrument was introduced to both consumers and businesses, which was variable rate loans. This instrument, allowed for introductory rates for a
short time frame, then becomes a variable rate, which is normally 200 basis points above the going rate for standard fixed loans. Though a relatively
new instrument, it allowed for the most recent recession to become one of the largest losses of capital in recent history, as millions of homeowners
were allowed to purchase homes, which they could not afford. This was only the first mechanism, which allowed the market to collapse. Many parallel
events to this recession have happened throughout recorded history. The first among them in the United States was the great panic of 1837, which had
similar underpinnings as the most recent crisis.
The Great Panic of 1837
Financial tools and arrangements have almost always been speculative, going from the first ownership of land and the creation of wealth, mankind has
always tried to value and gain or time what has become referred to as the market. Almost

Case Study : Corporate Responsibilty And Regulation
Anisha Patel
September 15, 2014
Corporate Responsibilty & Regulation
Cause of 2008 Financial Crisis
The financial crisis of 2008 occurred in early 2006 when the mortgage market showed apparent increasing rates of default. Due to these defaults, in
2006 there was a decline in US housing prices after years of exceptional growth. US citizens slowly watched their primary source of wealth deflate into
barely anything. By 2007, the prime mortgage rates had higher default rates. Unfortunately Collateralized Mortgage Obligations, allowed this issue to
spread from mortgages to other aspects of the American economy.
There are many reasons why the financial crisis of 2008 occurred, many blame the faulty mortgages as the primary issue, it is one component that
led to a deeper problem. These are some of the issues that formed the crisis and affected people domestically and internationally. The imprudent
mortgage lending was an issue. Behind a backdrop of plentiful credit, increase in housing prices as well as low interest rates, loaning standards were
undisturbed to a point where people were buying houses they couldn't actually afford. As prices began to plummet and loans began to decay there was
a severe halt to the US financial system. The housing bubble was another issue that contributed to the crisis. There were such easy monetary policies
that the Federal Reserve allowed prices to rise to an unbelievable level. Another huge problem was off–balance sheet finance. Banks created

C.H.I.N.A.: 'Cheap House Is Not Allowed'
C.H.I.N.A.: 'Cheap House Is Not Allowed'
Will China's real estate bubble burst?
Since the onset of the global financial crisis in 2007, China has faced some critical problems linked with the excess of liquidity in its internal market,
due to the stimulus plan launched by the Government to soften the effects of the crisis. As a result China is now fighting against a high rate of
inflation (especially food prices) and a high cost of property. While the inflation issue has been partially solved in the first term of this year, the fear
for the real–estate market trend is still alive.
This essay aims to critically analyse the real estate market in China, which is also strictly linked with the health of this country's economy, by ... Show
Real–estate investment has represented a wide portion of this fixed assets investments. In fact, this industry, as a driving force for national economic
growth, received more policy funding than before the financial crisis. It is important to note, however, as Jianping Y. and Chao S. (2011, pg. 231) point
out, that the investment–led recovery is the result of government investments (direct or not) more than the ones from enterprise sectors.
As Chanos declared in an interview for International Business Times (2011), China is now in the middle of a huge housing and commercial real
estate bubble. Considering what we have previously said, China apparently presents all the classic signs of a bubble.
(1). Jianping Y., Chao S., 'The impact of the financial crisis on China's housing market', 2011, pg.230
Since 2005, average prices in China's real estate market has been growing rapidly every year. Analysts such as Javers E. and Powell B. (2010) argued
over whether this rise was an effect of a speculative real estate bubble, or a real increase in demand. Signal of a bubble could be the big number of
empty or uder–performing buildings and the continued construction of property, including an estimated 64 million unoccupied flats (AsiaNews, 9 Aug.
2011). As Xu Shenglan (2009) wrote, there were "high price–to–income ratios for real estate", such as in Beijing where the ratio is 27 to 1

The Mortgage Crisis And Stock Market Decline Essay
Introduction
The perseverance of this final paper is to evaluate the methods in which behavioral finance can be used to elucidate the mortgage crisis and stock
market decline. There will be personages' retorts, specifically investors in the stock market, evidential psychological biases, and a clarification of
behavioral finance. In conclusion will be how I can use behavioral finance to overcome some of the psychological biases that ensue.
The mortgage crisis in relation to behavioral finance
Behavioral finance definitely can be a topic of an impact on the financial crisis, more specifically the mortgage crisis of several years ago. The
mortgage market has since been on the upward trend; however, there are several implications, which hindered the growth process strictly related to
behavioral finance. In the excerpt from Nicholas Barberis entitled, "Psychology and the Financial Crisis of 2007–2008," he talks about the implications
from behavioral finance to specific topics, including the mortgage/financial crisis.
One example Barberis uses as a theory of the results of the crisis is the real estate bubbles. Due to the high spike in home prices leading up to the year
2006, there were several defaults on subprime loans. Essentially the home prices rose so high that they became overvalued, thus causing the default on
the subprime loans. Valuations were given for growth in the economy, relative to the real estate market, which also lead to the spike in home prices. In
the

Marketing Strategy of Williams-Sonoma
1. Williams–Sonoma has experienced strong growth in the past year, but this is on the back of a strong economy and in particular a strong new home
market. The furniture business is strongly correlated with the strength of the real estate market. In this respect, the company's strategy is largely
irrelevant, because within the next five years the real estate bubble will burst and Williams–Sonoma will suffer a major downturn in its own results as a
consequence. However, this reality shows that the company perhaps lacks sufficient differentiation, and can only be expected to perform roughly in
line with the housing market. It is neither outperforming competitors nor is it underperforming. W–S has sufficient differentiation within the
furnishings and home products segment, and has a fairly strong brand name in the segment. The company's status as a mass–market premium company
allows it to grow strongly in strong economic times, but also makes it particularly vulnerable to economic downturn, because not only do consumers
redecorate at greater intervals, but they will trade down to more affordable stores when they do.
The key, of course, is that the premium positioning allows W–S to earn relatively high margins on its goods. The company, however, needs to have a
plan to save some of this wealth for the down times, because real estate has always been cyclical. If it does not prepare, W–S will find itself financially
struggling in five years, but if it does prepare, W–S might

Robby Real Estate Bubble Flipped Case Study
Has the NYC Real Estate Bubble Popped? Some of the largest cities in the world seem to have experienced real estate market peaks. Has this
phenomena hit The Big Apple? All indicators say "yes". According to Bloomberg, the vacancy rates in New York City were at 2.87%, up from 2.31%
reported last year. While you may not think that is that big of a deal, that 2.87% is the highest the vacancy rate has been in the city since August of
2006. This increase indicates that tenants have reached the limit on what they can pay. Not hard to see that when you take into consideration that in
November, the monthly rent for an apartment had climbed nearly 4% from the previous year. The cost of leasing is even higher, it jumped up 18%. On
the other hand,

China Housing Bubble
Week 2 Hand–in Assignment OUTLINE Thesis statement: The soaring property prices in China's coastline and major cities such as Beijing,
Shanghai, Shenzhen, and Dalian has formed the biggest bubbles in the real estate market in the decade. However, we do not see any slowdown in
these cities. As of today, the property prices seem to keep on growing forever. Will China's housing bubble pop? Compare the housing bubbles in the
United States with that in China * A brief background information about the housing market in US before it crashed down * Elaborate on China's
current housing market and see how close is it to the housing market condition in the US Different views on China's housing bubble * Optimists think
that even... Show more content on Helpwriting.net ...
2014). They argue that China's economy is a whole different picture than the US. First of all, they point out that the US housing crash damaged
most of the Americans' life, but such case is very impossible to happen in China because China saves far more than any other countries in the
world. Secondly, the Chinese government's debt is much lower compared to the United State; hence the government is more capable when it
comes to helping its banks in case of the assumed 20% of loans gone bad. Third, China's policymakers will take necessary strategies to ensure the
overall impact on the economy is not as strong as we have experienced in the crash down of the US economy, once the correction of the price is
foreseen. Some of the economists even debate that China's government will not allow the pop. As shown by the statistics, about 90% of the
population own at least one home, where 65% of people's investments are in the property market. If the bubble were set to pop, the Chinese
government will not be able to afford the consequences of the social unrest (The Bloomberg, 2014). So Xi will use all the necessary means to avoid
the housing market from crashing down. One of the attempts is to implement a charge of 20% property tax on the sale of the second home; and the
other is to require a 70% of down payment in the case of buying a second home. Not quite of a surprise though, before the new policies come to effect,
the real

Explaining the Decline of Business in 2007
At the onset of this project we came up with the claim that I could use the logarithmic and/or natural log to explain the decline in business. The
way in which this is to be accomplished is by taking all the sales figures from a 31 day period in 2007. We would then take another month with the
same 31 day period and take those figures. After graphing and comparing the two we postulate that the graphs would show the direct decline
graphically of what we will explain in this paper. After graphing the figures we saw that the mathematical model that we had previously used would
not be adequate with the explanation. So we then did another 31 day comparative between a 31 day period in 2007. Then again in 2013. These figures
were then compared to the national average for hotels for the same period. The interesting fact that came about was the direct correlation between the
falls in sales figures both nationally and here in south Florida and the corresponding securitization and real estate bubble burst. What we will do in the
following pages is explain what led up to the bubble burst as well as some of the mathematical approaches in explaining the bursts. Every economic
bubble in history started with reckless expansion of money supply and credit, reckless manipulation of interest rates, or government promotions of
"low–risk" something for nothing schemes. We saw this happen during the Reagan administration with the low interest rates given. Hence the new
popular movie Wolf on Wall

Gurgaon Real Estate Development
Introduction Real estate sector is popping dead set be a significant contributor to the economic system and a few argue that within the close to future
might be thought–about because the back bone of the economy. but some economists have expressed considerations that housing markets in some
major Indian cities is also property bubbles and ar expected to burst . the first causes triggering exploding of this presently theoretical bubble would
come with political instability within the country, restrictions on banking exposure to the current section of the economy by the bank of Republic of
India. this can probably be in an effort to forestall the type of huge housing value crash that occurred throughout the autumn of u. s. property bubble of
2008–2009, however it's going to have the alternative impact, dashing up losses. But as of currently the arena is during a pop out stage. during this
Report, on the idea of assortment of primary knowledge, I even have brought along the factors crucial the worth of property, factors touching call of
investment in property and major areas of investment within the sector with a study of the prospect of Gurgaon and closely encompassing areas. The
Objectives of my study as I even have mentioned on top of are: To determine factors touching the worth of property. To determine the factors effecting
call of investment. To analyze impact of growth in property (in Gurgaon). This report concludes that it's the income and Government

Ghost Cities, And Real Estate Bubbles
Development, Urbanization, Ghost Cities, and Real Estate Correlation in China: Another Perspective
The People 's Republic of China has had one of the wildest real estate sectors of any large–scale global economy. Chinese real estate value have been
appreciating dramatically and at least abroad in the United States, media outlets have been covering this topic in an extremely sensationalistic way
reporting "ghost cities," and "real–estate bubbles" at their bursting point.
Yale Professor Stephen Roach[1] says thatChina 's modernization is the "greatest urbanization story that the world has ever seen." A plethora of
articles and documentaries cover the phenomenon of "Ghost Cities" which are supposedly the symbols of economic waste and rampant
industrialization in the People 's Republic of China. Observers blame the rise of these "Ghost Cities" on corrupt funding via risk–laden
local–government financing vehicles and as symptoms of China ' inevitable demise.
The skyscraper–filled skylines of a number of Chinese cities remain eerily vacant devoid of inhabitants. Yujiapu, located in Conch Bay north of the
bustling port city of Tianjin is a backdrop of dirty vacant office towers and unfinished hotels that strangely resembles New York 's Big Apple.
Situated in a river bend, and modeled after Manhattan, Yujiapu was envisioned in 2008 to become the new financial center of the world complete
with a Rockefeller Plaza and China 's version of the Twin Towers. The 5–star Country Garden

Housing Data Point Towards A Housing Market Bubble
Does Recent Housing Data Point Towards Another Housing Market Bubble?
The last housing crash was devastating to the global financial community. Considering the current trends in the housing market, are we becoming more
at risk for another housing bubble? The experts continue to debate this contentious question.
As home prices continue to skyrocket, speculation in the market persists and reinforces the upward trend in the housing market. Data from the National
Association of Realtors, or NAR, reveals that some of the conditions that led to the 2007–2009 housing bubble and crash began reappearing in 2015.
According to NAR, home price increases have been incredible in the previous years; in May 2015, 39 successive months of increases in housing
prices was recorded; since the last housing bubble and crash, from May 2014 to May 2015, home prices have gone up a staggering 7.9%. In addition,
the NAR noted that 5.1% of the existing housing market inventory sold, which when seasonally adjusted, equated to a rate of 5.35 million homes.
Recent financial data indicates median home prices have shot up more than a whopping 35% in the past 4 years, and the amount of residential real estate
sold increased up to or past 30%. Is the current housing market in correction territory? Although some would say it's only natural the housing market
push such new heights after reaching the lows of the last bubble explosion, others would argue that the market has ultimately grown too fast and for too

Real Estate Bubble in China
Real Estate Bubble in China: the Present and the Future
2011 Q3
HA _S28
0102883578
Introduction:
The concern over whether China is experiencing a real estate bubble has increased, especially after Dubai crisis happened. The construction area of
both residential and commercial properties has increased by almost 6 times since year of 2000.
China has enjoyed a sharp increase in property price since 2006. Especially, after 2009, due to the large stimulus package, majority of the money went
to construction and real estate industry. It further pushed up the property price, leading to a lot families became the "slave of the property" who were
struggled to pay the mortgage. Not only the high price has affected most people's lives in ... Show more content on Helpwriting.net ...
This has been interpreted as a sign of over investment and real estate bubble. In the case, the apartments have all been sold out, even though nobody
moves in. because most people believe that property will grow definitely. For investment purpose, most of them prefer to buy one. This kind of
behavior has contributed to the high vacancy rate in China,
High Vacancy Rate: since official data are not reliable, the concrete number of vacancy rate is not available from official sources. The reason for this
has been that government officials said that, they don 't know what vacancy rate means. Obviously, government is trying to avoid knowing the fact.
Somehow, people have provided a rough estimate on the vacancy rate. They are using how many electric meters that have no readings for 6 months as
an indicator of vacancy rate. Overall, we got a number of 65.4 million apartments. It is estimated that the vacancy rate is as high as 36%.
With such a high vacancy rate, people are wondering how large the real estate bubble in China will be. James S. Chanos, one of the first foresee the
collapse of Enron and earn large profit from hedge fund, gave the answer, it will be Dubai times 1000. A growing number of economists and hedge
funds managers have been believed that Chinese economy is a big bubble. Others argue that China is definitely not a bubble, the development is real.
There is overheating in some area, but infrastructure construction is still necessary to a

Real Estate Bubble Burst Research Paper

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