How interest rates negatively affects the real estate market?

[Good-Person]

High interest rates are very bad for certain kinds of industries. When the interest rates increase, people have a really harder time dealing with expenses and debts. This also has a really huge bad effect on the real estate market. So, how interest rates negatively affects the real estate market?

 

[Nomad]

The real estate market is funded through bank loans. The property developer or real estate companies invest in the market and property through a bank loan, and when the interest increases, they will have to increase their price, and when the price increseas, they will have hard time finding buyers.

 

[Ja Sa Bong]

High interest rate affects everything. The real estate sector isn't left out. Bank loans are affected much by high interest rate and it's why most people can't afford applying for these loans. The high interest makes it hard to pay off the loan.