What causes a housing market to crash?
In: 1
Generally it simply boils down to the time it takes to build a house. Demand increases so price does,as price gets up it becomes more appealing for developers to buy land and build housing developments.. this continues and eventually demand is met, prices level out, but many still have projects being built, by the time all the in progress construction is complete it has now tipped to supply being greater than demand so prices start to crash. Then 15 years later it repeats.
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