
- Interest rates: When interest rates rise, borrowing money to buy a home becomes more expensive. This can lead to decreased demand for homes, which can cause prices to fall.
- Inflation: When inflation rises, it means that the cost of goods and services is going up. This can make it more difficult for people to afford a down payment on a home, which can also decrease demand.
- Supply and demand: The supply and demand for homes is also a major factor in determining prices. If there are more homes for sale than buyers, prices will tend to fall. However, prices will tend to rise if there are more buyers than homes for sale.