Many, often surprise, why, it is often, so challenging, to understand, predict, etc, many of the variables, involved, when it comes to the real estate market. Why are prices, so high, or low, or a buyers market, or sellers market? Why do some houses, sell, very quickly, while others, keep, unsold, for a seemingly, long period? What makes pricing fluctuate, etc? With that, and more, in mind, this article will attempt to briefly consider, review, and discuss, 6 factors, which often, determine, how the real estate markets, might perform, etc.
1. Supply and need: Like so many economic issues and considerations, supply, and need, often, is a major factor, in the performance of the housing market. When there are more buyers than sellers, we call this, a sellers market. When the scenario is reversed, it’s a buyers market. When there is balance between those seeking to buy, and sell, conditions are neutral. Many factors and considerations, go into, what market conditions, might be, including the overall economy, mortgage rates, tax laws, employment/ jobs, etc.
2. Economic strength/ employment: When possible homeowners feel comfortable and obtain, in terms of their employment, presently, and for the foreseeable future, they proceed, with a mindset, which focuses on the possibilities!
3. Consumer confidence: The more, consumers characterize confidence, in the overall strength and stability of various factors in the economy, and the more convinced, ownership has advantages over renting, etc, the stronger the possibilities for housing and real estate pricing. applicable factors include: mortgage rate trends; tax considerations; the attractiveness of certain neighborhoods, areas, and homes, etc; and the overall national and international economies, and the balance between positive and negative factors/ trends.
4. Mortgage interest rates: When mortgage interest rates are low, the corresponding monthly carrying charges/ expenses, are reduced, This method one can buy, more house, and be able to provide the costs. When rates are higher, monthly costs rise, and, this is generally, a negative factor, in terms of rising prices!
5. Tax considerations: The tax reform legislation, passed at the end of 2017, places caps, on the amount of real estate taxes, which are deductible. consequently, homes in states, with higher state and local taxes, are slightly, at – risk, in terms of maintaining their value, because this, considerably increases the costs of home ownership!
6. Real estate, often, is local: There is a slogan, All real estate is local, which method, every local housing market, is different and variable! Avoid believing, what happens in other places, is directly related to your specific vicinity.
An educated homeowner is beware, and prepared! The more one knows, and understands, the better all are served!