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Property Price Volatility

Property price volatility refers to the fluctuations in property values over a specific period, often due to changes in economic conditions, supply and demand dynamics, government policies, or other external factors. This phenomenon can significantly impact homeowners, investors, and the broader economy, as it affects asset values, wealth accumulation, and financial stability.

Causes of Property Price Volatility​

  • Economic cycles: As economies expand or contract, property prices tend to follow suit. Rising economic activity can lead to increased demand for housing, driving up prices.
  • Interest rates: Changes in interest rates can influence borrowing costs and, consequently, the affordability of properties. Higher interest rates may reduce demand and lower prices.
  • Supply and demand imbalance: Shifts in population growth, urbanization, or changes in government policies can create supply and demand imbalances, affecting property prices.
  • Global events: International economic trends, global pandemics, or natural disasters can impact local economies and property markets.