Question

Explain why the housing market follows an up-and-down cycle. Follow the cycle, for example, why does it go down and what to people do when prices go down? Up?

Answer 1

The house market follows the law of supply and demand therefore it has an up and down cycle. ... This, along with low interest rates, increases the demand of houses in a place. As demand increases, usually the supply decreases because house take more time and resource to be produce than other goods in the market.