Final answer:
Blockbusting is the term for the illegal practice of inducing homeowners to sell property cheaply by inspiring fear that minority groups will be moving into the neighborhood.
Step-by-step explanation:
Another word for the illegal practice of panic selling in the real estate context is blockbusting. This refers to the tactic where real-estate agents and speculators induce the selling of homes at below market value by exploiting prejudices and fears of homeowners. The method typically involves suggesting that minority families will be moving into a predominantly white neighborhood, precipitating a rapid sell-off by homeowners ('white flight'). The agents then acquire these properties inexpensively and resell them at higher prices to minorities who often have limited housing opportunities.
Such practices are illegal and unethical, as they not only manipulate homeowners but also reinforce segregated living patterns and racial discrimination. Speculation, which is a broader term, involves investing in risky financial opportunities for the potential of quick profits due to market fluctuations, and can sometimes intersect with blockbusting practices.