Impact of Market Crash

[Liam Weld]

Hi guys!

I was once told that in a real estate market crash, the surrounding area of a city will fall in value just as much as the most desirable areas in the city. Basically saying that even though the outskirts didn't rise as much, doesn't mean they won't fall as much. This doesn't make sense to me since usually investments are volatile on both ends (up and down), not just up. Could someone clear this up for me?

I ask since I'm a Canadian who is constantly told we're in a bubble haha.

Thanks!