What is blockbusting and how does it violate fair housing law?

Blockbusting, also called panic selling, is the illegal practice of inducing homeowners to sell their properties by suggesting that members of a protected class are moving into the neighborhood and will cause property values to decline. An agent might tell homeowners that a minority family is buying nearby and they should sell quickly before prices drop. This practice exploits racial fear for profit and violates the Fair Housing Act. Blockbusting was historically used to destabilize integrated neighborhoods and profit from the resulting panic sales and racial turnover.