What can cause the Real Estate tate market to crash?

[Kross]

The Real Estate market is quite a very big market in the financial sector because many people buy real estate as assets. At some point, I often hear that the real estate market has crashed. What are the things that causes the real estate market to crash?

 

[Springtime]

Real estates will crash when the economy is bad and there is oversupply. If the lending interest is high, that will also affect the real estates market.

 

[Min George]

Real estates will crash when the economy is bad and there is oversupply. If the lending interest is high, that will also affect the real estates market.

That means that investing in the real estate sector is subject to how much one can monitor prevailing interest rates?

 

[gwolf666]

I understand that if there's an excess of demand from buyers or sellers, it should collapse, right? Because, for example, if they never sell anything or can't buy any property, rent it out, or find someone to rent it, it should collapse because then their business wouldn't work. I think this is one of the few ways, right?

 

[Springtime]

That means that investing in the real estate sector is subject to how much one can monitor prevailing interest rates?

If interest rate is high, that means have to pay more interesting for your mortgage loan.

 

[Augusta]

Factors leading to a housing market crash varies ranging from economic recessions, depressions, and job losses to high mortgage rates that make buying a home widely unaffordable.

 

[magnus2022]

That means that investing in the real estate sector is subject to how much one can monitor prevailing interest rates?

Honestly, real estate is the most profitable business you can think of! It hardly crash.

 

[Nomad]

One primary reason is low demand and high supply, another reason is interest rate hike, third reason is stock market crash.

 

[Suba]

There are many causes that can cause the real estate market to crash, such as rising interest rates, so that home financing becomes expensive, and people's purchasing power decreases, inflation also often causes real estate prices to stagnate or even fall,

 

[Fire&Rain]

When the economy falters, people are less likely to buy homes or invest in real estate, which can cause prices to drop and demand to shrink. I see this factor happening in my country and its a scary phase.

 

[Augusta]

Stock market crashes tend to be good for the mortgage industry overall, as they result in lower rates and an immediate upswing in purchases