Real estate market dynamics

The real estate market is influenced by factors like interest rates, economic growth, and supply and demand. When interest rates are low, borrowing becomes cheaper, encouraging more people to buy homes, which can drive prices up. Conversely, high interest rates may reduce demand and slow price growth or cause declines. Limited housing supply and increasing demand push prices higher, while an excess of properties can lead to falling prices. Market cycles also occur, with periods of growth followed by corrections. Overall, real estate prices reflect economic conditions, consumer confidence, and demographic trends.