The real estate market includes property sales, rental, and investment opportunities. Real estate agents and brokers act as intermediaries to facilitate these transactions. Their expertise in local and general real estate market trends makes them valuable resources for buyers and sellers alike.
Real estate market trends are influenced by a number of factors. Economic factors, such as GDP growth and employment rates, impact demand and supply. Interest rate fluctuations influence mortgage rates and property prices. Government legislation and incentives, such as tax credits, deductions, and subsidies, can also boost or inhibit demand. Demographic factors, such as population growth and migration patterns, can also affect housing demand.
Understanding real estate market trends empowers you to make smarter decisions as a buyer or seller. For example, knowing whether a neighborhood has an ample supply of for-sale homes compared to the demand for them will help you determine your purchasing or selling power. Similarly, understanding which cities are rising or falling in the ranking of top real estate markets can help you make smart investments and avoid costly mistakes.
It’s important to remember that real estate activity varies by season. For example, winter weather in many areas slows real estate market activity while summer temperatures cause it to pick up. To account for this, real estate data is “seasonally adjusted” to provide a truer picture of monthly market trends. Regardless of the season, however, the overall trend is one of narrowing gaps between demand and supply.