economic trends in real estate

Economic trends in real estate reflect broader financial and economic conditions. When the economy grows and interest rates are low, more people can afford to buy homes, leading to rising property prices and increased construction. Conversely, during economic downturns or higher interest rates, demand softens, causing prices to stabilize or decline. Additionally, factors like job growth, population shifts, and government policies influence the market. Overall, real estate tends to follow economic cycles, expanding during boom periods and contracting during downturns, providing opportunities and risks depending on the broader financial environment.