There are a myriad of reasons, we are currentlyexperiencing a real estate market, specifically, related to price increases, which, hasn't been witnessedin recent times! Evenafter more than 15 years, as a real Estate licensed salesperson throughout New York State of New York, the pricing of homes in certain areas, recently, have been remarkably and high! In certain regions, price rises for homes recently, that have sold, can be as high as to as high as 33% or more in blue world city. people are left wondering why and, what, are the most important factors/ motives, and how longwill this pattern continue. With that in mind this article will try to, briefly, consider an examination, look at, and discuss, 5 relevant factors, and what they suggest.
1. Supply and Demand:Real estate, especially, pricing trends typically, connect to the economic concept, of Demand and Demand! When, demand exceeds supply, meaning, morequalified potential buyers than houses to be sold, and being offered, prices will go up! The amount, and for how long depends, on whether, this trend persists or shifts! Economic theory states, the relation between the two elements, fluctuates in time and when it changes the fundamental, underlying impact, on real estate pricing is also affected!
2. low interest rate:Few can recall at any point in recent memory, when we experienced the mortgage or interest rates, at the same low levels as they are at present or for such a long or extended, time! When rates are low potential buyers become more likely to pay for their homes since they receive more, bang - for bucks, which means, their monthly, carrying costs for all mortgages, are lower. Because, the majority of people require funding (mortgage, etc), to be able to afford a home, on the own choice, it results in the situation of rising home pricing!
3. Post - pandemic desires, for change:After, this extended time, of the horrendous pandemic, many people are now compelled to change aspects of their lives, which includes, the type, and location of their homes. The long-term - duration of staying at home has resulted in an awareness of the perceived, weaknesses/ shortcomings of their current living conditions!
4. Bidding wars:For these past months several houses have sold, for more, than, they were listed for! In fact, we witnessed numerous bidding wars, especially, in certain areas, perceived, by many, as the most desired! This led to overall price increases!
5. Better, than average, confidence, of our nation's economy.After, over a year, of declining confidence in the, economy, and job market, because of the pandemic which, created, low consumer confidence, the exact opposite, has occurred, recently and both confidence in employment and job opportunities, and also a sense of stability and stability in the economy were factors, that have led to this price hike!
The rise in prices we are witnessing, in the home market is likely to at some point, fall as a wise buyer is able to make decisions with more thorough understanding, for instance! Be a smart homebuyer and pay attention to your desires, expectations, and economic, comfort zone!
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