Like any other market, the housing one has been going through different life cycle since 1970’s. It has been revealed that the this market goes through four different phases. These phases are through, upswing, peak, and downswing. However, these phases will depend always on the movement of factors that affect the property market such us economic performance, interest rate, mortgages facilities and so on. Overall, from 1970’s up to 2007 it has seen dramatic improvement mainly after the 1990’s crash. บริษัทรับสร้างบ้าน
Firstly, housing cycle starting in 1970 was too short taking a period of only five years. During this period the market has reach the peak just after two years. However the change in prices was high in this period which may explain the reason of quick downswing in the property market.
Secondly, from 1977 this market has improved until the early 1980’s where the property market has entered its downswing stage. Subsequently, the market has dramatically recovered until the 1990’s crash where there was a severe economic slow down and the housing market became unattractive.
Finally, although the market seems to be volatile in the last decade, the property market has kept improving up to 2007 where it reaches the peak and prices start falling dramatically. This has made it enter its downswing stage making an end of its cycle.
The dramatic households increase in the recent years has made house-building fail to respond dependently with demand. According to ODPM household has risen by almost 25 per cent in the last thirty years.