All These Things Could Happen
Property markets are known for being cyclical, or boom and bust as it is sometimes known. They rise, become unaffordable, fall, become affordable and buyers start buying again.
This article on the 18-year property cycle explains the theory behind cyclical property markets. It suggests a property market crash could occur around 2026-2027 followed by four years of property market recession before a recovery begins in the early 2030s.
While house prices have risen and fallen over recent decades it’s probably true to say that there have never been so many different forces at play in the market as right now. And rarely has each factor been so difficult to forecast. As each factor plays out at its own speed that could make for a very volatile market in the years ahead.