Real Estate is Basic Economics
The bidding wars are finally slowing down, but it’s important to understand why and look for opportunities among the noise…It’s no secret that rates are going up and home prices are higher and these factors cause hesitation among buyers. So fear is a very real factor in this equation. But rents are also going up, so look at the fundamental economics in your local market to gauge expected appreciation. Real estate boils down to economics. The major factors that influence home prices are income and population changes. While consumer sentiment also drives demand, the basic economic factors reign supreme in the long-run. In simpler terms: If population and incomes are rising in your market and they’re met with a limited amount of “homes available for sale”, then prices can be expected to go up. On the flip side, if the population is declining and jobs are moving out of your market, home prices could stay flat or potentially decline. Be ready to jump on opportunities when others are not willing!