In the wake of the 2008 financial crisis, banks significantly reduced their lending. This, together with other factors, led to a decrease in demand for housing, as people could not obtain the financing necessary for their purchases. Consider the evidence presented by the Federal Reserve Bank of St Louis regarding the supply of community bank loans. 

Can you think of any other short-term shocks to demand for real estate?

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• What would cause demand for real estate to increase or decrease? Engage with your peers in this small group discussion forum.
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