How the housing market can just “crash”? I (think I) get how the prices can go up, but what makes them go down suddenly?
In: 1
Supply and Demand
If 10 people want your house, they start offering more and more money driving the price up.
If 1 person goes to buy a house and there are 10 houses on the market in the area they want to live, all the sellers start dropping the price because they want there home to sell.
What makes this happen in short time periods are catalysts such as the recent fed move to raise interest rates. This makes it more expensive to borrow money which means less people buying homes.
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