Part of the economy is the real estate market. So anything that impacts it also impacts the overall economy as well. Similarly, any events in the economy as a whole also are visible in the real estate market. In the last couple of years, the economy struggled with a number of challenges. Consequently, the real estate realm also faced the same ordeal.
The state of the economy definitely affects the industry. Once upon a time, this had great positive impacts. Individuals always moved their investment money into real estate as the economy was plummeting into recession. The majority of them withdrew their money from the stock market as they were unclear on what the economy would do at that time. They believed that real estate was a more real asset class which could protect their money.