What causes a property price to fall?


Hi there, I am just starting to dip my toes into property investing and I was wondering what causes a property price to fall?


Bad economy!

Our economy creates jobs which we get an income from. We can then go to our bank and mortgage broker to borrow money so we can buy a property. This creates demand in the property market.

When the economy is in decline, there isn't enough people borrowing money which is how the market decreases in demand.


Sometimes the banks will change their lending structure which limits people from getting loans. This then leads to less properties being bought and a decline in the market.