What Is Amok? Or, Housing Amok.

From time to time a real estate housing is running amok. Home prices kept going 3-5-10 times sharply up, then spiraled down. Intoxicated buyers are keeping snapping houses and condos, regardless of price, as if only a sky is a limit. Then suddenly, without any warnings all buyers simultaneously stopped their buying sprees. The result is: real estate dropped into a dead zone. Prices plumed to the original level, or even lower (before the housing amok) and – bankruptcies and foreclosures are rampant.

In the last 20 years there were 3-4 such housing amok. What is an impetus for these housing amok? Why buyers are not using common sense, or never research states rules and regulations about buying real estate?  This story answered these questions.