It may be painful to home owners at the time, but Don Pitts of CBC News opines that an economic or real estate bubble burst will ultimately prove beneficial to the industry – and by implication, said home owners – in the long run.
A bubble burst happens when supply exceeds demand. In the case of real estate, an upsurge in housing needs can cause overconstruction which means too many empty houses with too little owners. Pitts mentions that vacant luxury homes surrounded by weed were common in his childhood.
While this trend may seem debilitating to the industry, Pitts makes a case that as the bubble dissipates, the abundance of real estate property in the market will help stabilize the industry and encourage home owners to buy again.
