There’s a lot of factors that impact real estate prices, but they all ultimately depend on liquidity. Liquidity is just a way of saying there needs to be people that want to buy your home, and have enough money to buy it. The money used to come from income and savings, but in the late ’80s banks started extending more and more credit. To rip a page out of the Wu Tang Financial planning guide, we replaced cash with credit in CREAM. That’s why you should get familiar with the credit cycle, and how it impacts real estate markets.

Read more: https://bit.ly/2zUc3YV