Real Estate Market Down | Will Prices Drop

Majority of the homebuyers have an impression that property prices would be keep on rising. Although, it seems not so special, especially when one discusses about mortgage rates of previous decades. The rates of the properties may continue to skyrocket, which might create a trouble in real estate sector. Some real estate specialists believe that real estate recession might be able to converse some of the main price gains in the houses. Some of the real estate markets like Pakistan had witnessed several slowdown in past few years. Even, the real estate experts have a belief that there would real estate market down in some countries.

Real Estate Market Down

Will real estate witness a crash?

Some of the real estate markets like Pakistan fluctuated downright, especially during 2008 financial recession. The rates of the houses witnessed numerous crashes, which resulted in worst consequences. It was the time of real estate market bubble burst due to which world experienced real estate market down towards deeper crisis. Nowadays, the recent housing boom after COVID is also facing potential threats due by increasing mortgage rates and recessions. Some real estate experts argue that the rates of houses would automatically fall but the decline wont be that much severe. The only difference between nowadays and the time of Great Recession is balance sheets of homeowners. Some financial experts argue that the balance sheets have grown much robust, in contrast to what they used to be decades ago. Nowadays, any homeowner with stellar credit of mortgage with huge equity would fall below 5 percent.

Some of the important aspects to protect housing sector from crash are below.

Low inventories

Many of the real estate authorities think that one witnessed around 90 days houses supply during month of August. In previous year, the supply was very less since the inventory was very less. It proves that the buyers of houses had very few options, so many of the homeowners had to increase their rates. It also proves that supply and demand formula may not put the real estate market down financially in future. Real estate market crash is one of the biggest reasons behind low inventories.

Homeowners didn’t pay heed to demands

Many of the homeowners had change their selling strategy by keeping previous crash of 2008 recession in mind. Now, they cannot purchase any land easily, or get regulatory approvals to quench demand. Back after the precious crash that occurred during 2008 recession. Although, they are attempting to buy and then build like they used to around two decades before. But due to lack of supply and higher demand, they are facing issues with this. As builder are bringing those homes that are already available in the real estate market. After that, it depends upon the homeowners to make decision regarding their sale or purchase of their properties. Such move would be helpful in equalizing supply and demand of houses, so there wont be real estate market down.

Demographic trends producing new buyers

Nowadays, many of real estate experts are witnessing evolving demographic trends that create new buyer in market. Such trends has successfully created a huge demand for houses at different fronts. Many of the people in rich countries like USA are owning the properties that they bought during COVID. During those days, many of the industries encouraged their staffs to work from home. Millennials have mainly followed this trend, and are passionate enough to build a home, where there would be a separate workplace. In other words, they look for a place to live that would be their office at the same time. Such emerging trend has resulted in lowering the chance of real estate market down trajectory with real estate market decline.


Despite numerous challenges, the real estate market doesn’t seem like fluctuating. It causes numerous slowdown, which might not make real estate market down. The prices are very high due to which the actual volume of sale has decreased. Also, the inventories of houses for sale have declined due to this issue. Some Homeowners who locked their 3 percent mortgage rates are not going to sell their properties. For more details regarding the newest update about real estate market situation, please reach out to professionals of Estate Land Marketing. Our consultancy firm has some knowledgeable real estate expert that assist in making beneficial decisions.

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