I find it sometimes clearer to think in terms of commodities.
In the corn business when price values are near say 5 year high prices then corn production might be profitable. Farmers might plant more corn. People might quit their jobs to become corn farmers because there is so much money to be made growing corn. This increases the production of corn, also called the supply of corn. The increasing corn supply might cause price values to decrease. Corn production might not be profitable when corn prices are near say 5 year low prices. Farmers might stop planting corn. Corn farmers might quit the farming business because they are losing money. Corn demand still exists but the corn supply is reduced so corn prices might increase again. A dry spell, railroad worker's strike or some increase in industrial demand for corn might cause price values to increase again. The cycle of price values continues changing, just as price values always changed throughout history.
The oldest documented trade that I know of is the biblical story of Joseph and Pharaoh cornering the wheat market of ancient Egypt as recorded in the Bible, Book Of Genesis.
Now you know what to look for. When prices are high lots of people enter the business. When prices are low businesses close, factories close.
How does the real estate market look to you now? What is the phase of the real estate cycle now?
