What are prices like in Moapa Tribal Enterprises?

Applying principles of economics, can someone tell me if real estate prices in Iran will crash?

• I was wondering if someone could apply the principles of economics, and tell me if the real estate prices in Iran will crash or not. Here is the summary of the situation: 1.Credit markets as you know them, don't exist. Buyer and seller agree on the payment, usually in two or three big chunks which covers the whole price. 2. Inflation is at 30%, but banks will give 12% for a GIC. 3. Due to high oil price, value of Rial to US Dollar has been steady for the pas few years. 4. The excess oil revenue was injected into the economy, causing the high inflation. 5. Some of that oil revenue was given to enterprises to be invested in factories, but due to the high risks involved, was instead invested in real estate by recipients. 6. Average person makes less than US$1000 per month,but there is an elite few who make in the million of USD per year. 7. Price have increased 40% in 2006, 50% in 2007, and 100% nin 2008. They have decreaed about 10% since summer. 8. In northern Tehran, an apartment can cost as much as USD1,000/sq .ft. 9. A big part of population is born around years 80-83, who are now entering the market, IF they can afford it. 10. Demand DOES exceed supply, however, speculation is widespread too. I appreciate your answers.

• Answer:

  If people buy hoping to sell for a higher price in the future, it is a bubble and it will deflate (or burst). It is hard to predict what will cause the panic, basically any bad economic news (falling oil price) or political/military trouble can start a panic.