The housing balloon which was till now inflated seems to be deflating. . Housing prices which had skyrocketed due to inflation are now witnessing a downward trend. Everybody seems to be worried how much the prices would drop and till what extent and what would be its impact on the people.
Some experts feel that the spiral was caused due to the market fundamentals whereas other feel that speculation was the major reason behind rise in prices. But now the prices have reached a saturation point as they were rising faster when compared to the average personal income.
With prices starting to fall down everybody seems to be worried. Some say it would not come down that fast whereas some feel the market is going to crash. Different people, different opinion but nobody has the correct answer. Not only people who purchased property at higher prices would lose but the whole economy would suffer as a result of the crash.
