The US housing market hasn’t been very stable this year – even though there are a lot of on-going debates about partial and full housing recovery from 2013 to 2014. People are still waiting whether to sell their properties or wait for another year to see how well the market condition is, while some are starting as early this year with their investments.
The real estate market is currently one of the largest and significant markets in many countries as it affects a wide portion of the economy as well as personal investments and even bank activities. Many wealthy people invest in either commercial or residential properties as a means to leverage more profit at their advantage.
Many people always blame business groups and corporations that own properties as to why they are controlling the market. But unaware of majority of people are certain facts that significantly contribute to the rise and fall of the housing market. But what exactly are these factors that drive the housing market? Below are certain factors that one must know, according to Investopedia:
- Interest Rates
- Government Subsidies and Policies
Aside from these four known and major driving factors in real estate, there are also other things that contribute to the markets’ performance. Housing inventories, home building costs, etc. – these items also contribute to the housing market. Especially to real estate agents, they look into real estate data and serve as their tool in analyzing, learning, negotiating, transacting and communicating with clients and prospects.
Simple improvements, rehabilitation or remodeling of the property could also contribute and drive series of effects in the market – in which it could drive an added value to the property when it is appraised and a lot more.
Knowing these factors could definitely help not only agents but also regular individuals who are looking to engage in real estate activities. It may help home buyers in deciding the right property for them. It might aid home sellers on what cost is adequate for them to adjust at a marketable and win-win situation.