Whether you are a buyer or seller of real estate, it is important to understand the factors that affect the market. This will help you make the right decisions, for the right location, at the right time. Here are some of the most common points to consider:
1. The position in the cycle of the particular real estate market will have a bearing on prices.
2. There is generally a direct connection between interest rates and prices. The higher the rates the lower the prices, and vice versa. The lower the rates, the more people who can afford to buy their first home or an investment property. This puts greater demand on the market.
3. Confidence in the economy is important to stimulate home buyer and investor activity.
4. Highly desirable locations will generally go up in price more quickly and consistently.
5. Certain times of year are traditionally slow months for residential real estate sales, hence prices decline.