Upside v Downside of markets

From experience I have noticed a trend following a boom.  Things like:

• The real estate market can stay the same for ages.
• In time, a shortage of houses to buy comes about as buyers get impatient searching for what they want
• When interest rates drop that gets borrowers very interested finding ways to take advantage of the situation
• After a boom the building construction continues and as demand drops that can cause an over supply
• Subsequently interest rates rise, people want to quit and move on for reasons like;  i) mortgage too high ii) job opportunities get scarce iii) people panic as they see the market stagnate

Finally, the crunch comes where the seller may have a choice between hold or quit.  In the main this comes about because buyers over commit.

PS - The adage that it can be cheaper to rent than buy is dubious in the long term.  It is all in the timing.!