Multiple choice

Which of the following has resulted in a slump in home sales and also the development of commercial property?

  1. Tightening of interest rates

  2. The economic slowdown,

  3. Both (1) and (2)

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Both factors contributed to the real estate slowdown. Higher interest rates made home loans more expensive, reducing buyer demand. Simultaneously, the economic slowdown reduced overall purchasing power and investor confidence. The combination created a severe downturn in both residential and commercial property markets.

Keep practicing — related questions