Since no one has a crystal ball, there will always be, a significant degree of uncertainty, when it comes to trying to predict, and forecast, the future, and trends, when it comes to the housing market, etc! Although, past trends, are significant, and important, to understand, we must, also recognize, we live in an evolving world, and, everything, from how, houses are marketed (especially, the digital/ Internet considerations), to the extended, nearly, historically low, mortgage interest rates, differ, from what has been witnessed, and experienced, in the past. With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 4 factors, which might probably, impact real estate’s future.
1. Supply and demand: One item, which has always been relevant, and still is, is the idea and concept, of Supply and Demand. When there is more supply (available houses on market, than qualified buyers), than demand (buyers, proactively, seeking a home, to purchase), home prices are stressed, and, often, fall! On the other hand, when the converse, exists, prices, generally, move upward. Housing prices, and pricing, are, generally, fluid, and, either, Buyers Markets, or Sellers Markets, often, come and go, quickly, and regularly!
2. Available funds: There are times, when lending institutions, follow, more strict guidelines, and, others, when money is looser! This creates, times, when they require higher, or lower, credit requirements, in order to loan, and finance, a house. In addition, depending on overall conditions, there may be, either, more, or fewer, qualified buyers. When money is more – readily available, lenders may require lower downpayments, which, means individuals, often, apply for a greater amount of the loan principal.
3. Job security/ optimism: The more, secure, potential buyers, are, and feel, and whether, they believe, there will be a prolonged, positive job/ employment market, often, determines, how many people, consider themselves, potential buyers. When there are fewer buyers, this creates, lower house prices, etc.
4. Local, regional, and national economic conditions: Economic conditions, often, dictate, and determine, the behavior and performance of the housing market! Although, world – wide, and national, economic conditions, are significant, regional and local factors, strengths, weaknesses, trends, etc, are often, even more relevant! When consumer confidence is high, and potential buyers, believe, positive things, will continue, the real estate market benefits!
Both, professional real estate agents, as well as homeowners, and potential buyers, benefit, when they better understand, as many relevant factors, as possible. Smart buyers and sellers, hire, someone, who will help direct them, to understand, the best courses of action, and opportunities.