At this point, the sellers have the negotiating power. More and more people focus on adding value to their properties and this continues until the end of the boom. Rents also increase during the early stages of a boom. As the rents rise, the number of people living in each dwelling also increases as it becomes harder for people to afford to rent.
About midway through this phase, rents peak. That affects the return investors are able to get on their buy-and-hold property investments, and with property values still rising, rents cannot keep pace. Slump In the slump phase, the increase in property values slows and may come to a halt as the supply of property exceeds demand. Sometimes values even recede, although this doesnt happen in every slump or in every area.