Many owner-occupiers are engaged in a form of speculation, in that whether, when, and how much space they buy is heavily influenced by their beliefs about the future course of house prices. As it becomes widely recognised that house prices are set to fall, this speculative demand will fall back, thereby releasing property onto the market and increasing the extent of price falls.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services