why does the real estate market crash with the economy, if landlords and mortgage companies dont usually kick out people as soon as they are not able to pay their rent/mortgage because of the market crash?
In: Economics
Actually, slowdown in real estate has always preceded a recession since WWII. Most significant indicator is a sharp slowdown in new home starts which happen before the onset of a recession. Reasons for this slowdown are numerous. Not enough buyers at the price. Inability for builders to lower the price because of high input costs. Slowdown in wages or some other calamity that prevents buyers from buying.
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