6 Factors Affecting Real Estate Home Pricing!

We are currently experiencing, historical period, ever – increasing, price, many houses, seems to be sold, for, some people, this is the way, the real estate market, is always; Instead of counting the biggest = picture! In fact, in history, this market, often, changes, sometimes, continues, as a seller – market, at other times, as a buyer, or neutral! Although over time housing prices continue, and to a lesser extent, inflation, how this happens, there is no consistent trend! How long the current conditions will continue, and what can happen next, as well as the time, this is not certain, and of course, it is not guaranteed! For more than 15 years, as a licensed real estate agent, in the state of New York, I have seen many different markets – conditions, and, in the big picture, and over time, there are at least 6 issues that affect pricing. With that in mind, this article attempts to review, examine, evaluate and discuss these, and why are they important?

  1. Supply and Demand: In the long-run, the economic concept of supply and demand is, perhaps, the most important, single-situation, what happens to pricing! What does this mean, simply, when, the number of sellers, more than Abundance of capacity, qualified buyers, home prices, in general, do not go up, but when there is a shortage of inventory (homes for sale – homes on the market), prices do go up! When, things, in-between, we witness an independent real estate market! At present, the reason, such extremes, price increases, economic shutdowns, etc. results, lack of inventory, many buyers, etc., and we testify that the understanding is that it is time. , for them, take action!

  2. general economy; Consumer/business confidence: The real, general economy and conditions, or, simply, perception, when buyers are optimistic, prices go up, and the opposite often happens, when they are pessimistic! Also, the level of consumer confidence, as well as confidence in job security etc. makes a big difference!

  3. Viewpoints of buyers and sellers: When buyers perceive real estate as an offering, meaningful value, and feasibility, it drives them to offer higher prices, and sometimes even creates bidding wars! However, sellers, when they are greedy and offer their homes, too much, prices, often, reduce this trend!

  4. Mortgage Rates: Lower mortgage rates allow buyers to afford more homes dollarBecause their monthly payments are low! Current market, one-of-a-kind, perfect wave, low supply, high demand and historic-low, mortgage rates!

  5. Environmental Issues (Positive and Negative) Many believe that most real estate is local, because environmental issues, both positive and negative, often create conditions that make an area more attractive, or less so – so! These include: security/crime; amenities; transportation; Education/schools etc!

  6. How a house compares to other similar properties Qualified real estate professionals, creating, fully prepared, relevant, of CMAs Or a competitive market analysis, which compares a particular property to a comparable/similar one, in the local market, at that time!

If you’re planning to buy, or sell, a home, doesn’t it make sense to understand the factors involved? Will you be a more educated home owner or buyer?

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