7 factors that affect house prices!
After more than 15 years as a licensed real estate seller in New York State, I have witnessed a variety of real estate markets, home prices, and market conditions! Since, for most of us, the value of your home’s financial assets is your only, largest, and most valuable asset, the more you know, the better off you are likely to be! There is not just one factor that impacts these conditions, but rather several, and this article will attempt, briefly, to consider, examine, review and discuss 7 of these factors, and why/how they have an impact. significant.
1. Inventory in the market: Examine inventory, at the current time, because it often determines how the laws of supply and demand may impact, pricing, trading, and market type/conditions. Obviously, if there are fewer homes for sale and a sufficient number of qualified potential buyers, it will have a big effect on prices!
two. Offer and demand: Like most economic principles and situations, the Law of Supply and Demand is important when it comes to housing and prices. When there are few houses available and more buyers than sellers, we experience what we call a Seller’s Market, which causes prices to rise. When the opposite happens, we are witnesses of the opposite. When there is a balance, there is usually more competition!
3. Mortgage interest rates: When the cost of borrowing is cheaper, as we are witnessing today, the monthly costs of home ownership become lower, and we can get more value for money! We are currently experiencing record mortgage rates, and this has been a major factor/cause in prices rising at an accelerating rate! Eventually, at some point, rates will go up, at least to some degree, and this will have an impact on housing markets!
Four. Consumer Confidence: Much of this relates to the level of consumer confidence, both now and in the future. Since buying a home is such an important commitment, etc., buyers’ attitudes become an important factor in this regard.
5. regional/local: All real estate is local! This time, proven, adage, states, actual conditions, in general, vary (sometimes significantly) from area to area! Especially, due to this recent horrible pandemic, some regions have become much more desirable, etc. . , What others!
6. Schools and safety: Quality school systems, in general, have a positive impact on house prices, but they can also have the effect of causing, raising property taxes, etc., which, in the long run, can become a hindrance, etc. In general, safety in the area and crime rates are directly related to prices.
7. Real estate taxes: Remember, property taxes are a significant component of the cost of owning your own home! In many regions, these are the main funding and payment vehicles for items such as schools, police, fire, maintenance, upkeep, etc.
The more you understand these factors, the better prepared you will be to find out if a home is worth its asking price (to you)! Will you become a smart home buyer?
