The housing market is the set of factors and elements that determine the volatility of the prices of houses and other types of real estate. Although there is no actual central exchange place for the market, the housing market is quite more organized and controlled than other types of markets. The reasons for the stability of this type of markets are several:
1- Stable Demand: Unlike other markets, the market of real estate has a relatively high undecreasing demand opposed by a volatile relatively low supply. This means that prices in this type of market are more stable and are rather following an increasing line on the long-term. This doesn't mean that sudden declining is impossible; however, any sudden opposing movement will generally be limited and easy to handle and maintain.
2- Wealth Conservation: The fact that most owners of real estates and houses are actually users of their commodities makes the purchase of a house an ideal and non-losing deal in most cases. For instance, even when one fails to sell his house at a desirable price, he may keep it since he would still use it as long as he will. Moreover, it's possible that s/he sell at a losing price for certain reasons. Yet, the owner is always a winner since he'll have benefited from the commodity more than he lost in the deal.
3- Security and Insurance: Almost any individual willing to invest in purchasing a house should either provide cash payments or rather take a housing loan. The fact that housing loans are the most secured deals makes the ownership of a house more secured and insured by legal documentations and contracts. This makes the exchange of real estate a very secured action which means more secured investments and less volatility of the market.
However, the real estate markets have passed through a period of decline to become a less secured and less profitable investment to pay your bucks in. The reasons behind this decline range from several economical, social, political and legal reasons including:
1- Credit Crisis: The credit crisis was the real reason for the economical crisis which faced the US and the rest of the world. Although the very direct reasons are still not approved, there was a series of indirect reasons which led to the problem. Although the US government explains that the banks got bankrupt due to the fact that people rushed suddenly to collect their savings (which meant having to pay more than the bank has of liquidity in its funds at hands), several economical
