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September 14, 2018
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The real estate market is undergoing a significant shift as interest rates rise, making homeownership more expensive and increasing foreclosures by 72%. New homebuyers are priced out due to high costs, disrupting the market’s pyramid structure. Additionally, the psychology of the market has shifted, with fear replacing the previous mania, causing investors to sell off properties. These combined factors rising interest rates, unaffordable housing, and changing market psychology signal the end of the real estate boom and could lead to a broader economic downturn.
Interest rates rising and foreclosures increasing lead to market shifts.
The bursting of the real estate bubble could have widespread effects on the global economy, particularly by triggering a recession. As housing prices drop, many homeowners and investors may face substantial financial losses. The ripple effect could lead to job cuts, reduced consumer spending, and a decline in overall economic growth. This downturn could be amplified by higher interest rates, impacting other markets and industries, and stalling global recovery. Economies that heavily rely on real estate will feel the strain, possibly leading to a prolonged economic slowdown.
The real estate market is seeing signs of a downturn as interest rates rise, making homeownership increasingly expensive. As a result, home sales are slowing, and the number of foreclosures is rising. If you’re concerned about these changes, now is the time to stay informed and make proactive decisions. Visit 3realmsinnovations to stay updated and explore how we can assist you during these market shifts.
Keep in touch with our experts to discuss how these market shifts may affect you. Call us now to get personalized advice and guidance through these uncertain times.TRACEY ANDERSON
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