How Does A Real Estate Crash Affect Your Portfolio?

Source: Forbes — 

The public perception is that as the economy and the housing market go, so does the rest of the real estate market. With anxiety over a potential housing crash, what would be the possible effect on your portfolio? For insight, let’s look back to the last housing crash that sparked the global financial crisis.

Reviewing The Great Recession

Let’s start with the causes of the housing crash of 2007. Experts agree that there was not just one factor that contributed to the housing bubble. The crash resulted from a combination of factors like the gathering forces of a hurricane that fed off each other until they could no longer be contained.