Real estate prices soar with increased investment, plummet with rising interest rates.
The article explores how interest rates, real estate investment, and real estate prices are connected. By analyzing data from 2003 to 2012, the researchers found that real estate investment boosts real estate prices, while interest rates lower them. In the long run, real estate investment has a bigger impact on prices. To control prices, it's important to consider interest rates and monitor real estate investment to prevent speculative behavior.