What happens when a housing bubble bursts

There are many economic factors that together contribute to such a situation like unemployment, recession, and political turmoil. The buyer market changes where the demand for homes decreases and the prices decline. The real estate market usually is not as vulnerable to such a situation as financial markets because it involves a physical asset. As the price decline, some buyers who are on rent can choose to own the property, which can ultimately lead to an increase in prices.