What is a housing bubble? Answering your questions as housing market spikes, raises concerns

Source: USA Today — 

America’s real estate market may be showing signs of a housing bubble as prices become “unhinged from fundamentals,” according to the authors of a blog post published by the Dallas Federal Reserve Bank.

House prices can fall out of sync with market fundamentals, like supply and demand, when there is a widespread belief that current high prices will keep climbing.

“If many buyers share this belief, purchases arising from a ‘fear of missing out’ can drive up prices and heighten expectations of strong house-price gains,” according to the researchers.