When will the property market crash

It is probably clear to everyone that the current development of the real estate market is unsustainable. It is characterised by soaring property prices, while people\’s economic situation is deteriorating. It is therefore not surprising that many lay people and experts are expecting it to crash relatively soon. However, people often do not know exactly what to make of this concept.

Simply put, we will reach a point where people will not be able to afford any property. Houses and flats will lie fallow, and since they will not make their owners money, it is clear that they will want to get rid of them. The market price of property will therefore fall, and people will have to afford them again, even if they are not in the best condition.

At least that is the scenario that most people imagine. The problem is that this scenario is quite unlikely. In fact, it is not so clear that the property market will not crash as soon as it might seem. Sure, prices are very high indeed, but that is far from the only factor at work here.

We must also take into account the fact that a large proportion of investment apartments are being bought up by professional firms or investors who, in turn, are profiting from this situation. It suits them if people cannot buy a flat themselves and instead have to rent. And there would be nothing wrong with that if rents were not also rising.

So it seems that the current situation will continue for some time to come, even though it disadvantages the ordinary person. But as long as it benefits the few people who have enough money, it is understandable that these people will try not only to maintain the current situation, but if possible to make it even stronger. However, it is clear that this cannot last forever.

The fact is that sooner or later the property market will crash. However, despite what ordinary people think, we are not yet at the point where such a thing is imminent. Things will get quite a lot worse before that happens.