Its somewhat of an academic question, but…
What is the mechanism behind the prices of property drastically falling after a building boom?
So, like if you take a city that has all these proposed projects in line, many already begun construction, and you have so many people investing by buying up the property (in form of apartments or condo’s etc), and then after a while …
You see prices start falling, and people finding their condo worth less than they bought it for.
Okay, so WHY does that happen? If people are in the market to buy, and property is being sold really fast…why do the prices fall?