Real estate prices don’t always go up. Market downturns happen. Understanding how they work and how to respond strategically matters. Why Prices Fall Interest Rates Rise : When mortgage rates jump from 3% to 7%, buying power crashes. Buyers can afford less. Prices adjust downward to match reduced buying capacity. This happened Portland 2022-2023. Rates tripled. Prices fell 7-10%. Economic Recession: Job losses reduce buyer demand. Foreclosures increase supply. Prices fall. Ho
