Can the real estate market crash if there's no inventory?

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This topic contains 0 replies, has 1 voice, and was last updated by  aaronpawlak 1 week ago.

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    aaronpawlak
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    HI,

    Just a general question. With many more buyers looking, rents rising, and less sellers can a real estate market decline considerably? In my market there’s a major housing shortage. I see a lot of overpriced junk, reminiscent of 2005. However now buyers are everywhere. People have to find a place to live. Just trying to come up with a scenario where prices are forced down (realistically). I’ve always thought when interest rates rise things would have to change, but not so sure now since there’s just a lack of housing…

    Please help.

    I didn’t find the right solution from the Internet.

    References:
    https://www.bogleheads.org/forum/viewtopic.php?t=241058
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    Thanks!

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