When it comes to the real estate market, many people often wonder why, in general, are so challenging, understanding, predicting, and many other variables. Why is the price so high or low, or the buyer's market, or the seller's market? Why are some houses sold for a long time, and others are still not sold? What makes pricing volatility? With this in mind, and more importantly, this article will attempt to briefly consider, review and discuss six factors that often determine how the real estate market may perform.
Supply and demand: from
Like many economic issues and considerations, supply and demand are often a major factor in the performance of the real estate market. When buyers are more than sellers, we call them the seller market. When the situation reverses, it is the buyer's market. When a balance is struck between those seeking to buy and sell, the conditions are neutral. Many factors and considerations relate to possible market conditions, including the overall economy, mortgage rates, tax laws, employment/employment, etc.
Economic strength / employment: from
When potential homeowners feel comfortable and safe, in terms of their employment, in the current and foreseeable future, they will advance in a way of thinking that focuses on possibilities!
Consumer confidence: from
Consumers show confidence in the overall strength and stability of various factors in the economy, and are more convinced that ownership is more advantageous than leasing, and that housing and real estate pricing is more likely. Relevant factors include: mortgage interest rate trends; tax considerations; attractiveness of certain communities, regions and households; and the balance between the entire national and international economy, and positive and negative factors/trends.
Mortgage interest rate: from
When mortgage rates are low, the corresponding monthly shipping/costs are reduced, which means that one can buy more houses and be able to afford them. When the interest rate is higher, the monthly cost rises, and in terms of price increases, this is usually a negative factor!
Tax considerations: from
The tax reform legislation passed at the end of 2017 sets an upper limit on the deductible real estate tax. Therefore, families with higher state and local taxes have certain risks in maintaining their value, as this will greatly increase the cost of home ownership!
Real estate is usually local: from
There is a slogan, all real estate is local, which means that each local real estate market is different and variable! Avoid believing that what happens elsewhere is directly related to your particular area.
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