4 Types Of Real Estate Market You Need, To Know

Although, some people, seem to attempt to market – time, the real estate/ housing market, in most cases, it is an unwise, course of action! No one knows, for sure, what the future, may bring, because, a combination of factors, including, other economic conditions, supply – and – demand, interest rates, consumer perceptions, specific locations, etc, impact conditions, etc! Basically, the better, one knows, and understands, these possibilities, etc, and proceeds, in an alert way, the smarter, and safer, he is! Trying to time the market, often, either, makes someone, fail – to – act, when advisable, and/ or, take hasty actions, to get – in, on the current trend and conditions! There are four basic, types, of real estate markets. and with that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, each of these, and what they mean, and represent.

 

1, Very – hot Sellers Market: In my, over 15 years, as a Real Estate Licensed Salesperson, in the State of New York, the current conditions, represent, the hottest, Sellers Market, in recent memory! Whether, because, of pent – up demand, caused by the extended, horrific pandemic, or historically – low, mortgage – interest rates, a buying – frenzy, etc, home prices, are, at levels, we have never seen, before! The rate/ pace, of this rise, combined with, the ability to get, greater, bang – for – the – buck, has created home – prices, at such a high level!

2. Normal Sellers Market: It is considered, a Sellers Market, when the number of potential, qualified, interested buyers, out – numbers, the houses, listed, on the market, for – sale! The difference, between this condition, and the one, above, is the degree of impact, These conditions, historically, are part of a regular, recurring, real estate cycle, while the previous one, is quite, a bit, rarer, and more extreme!

3. Neutral: Markets are considered, neutral, when there is, a similar number of buyers, and sellers, and, thus, neither the buyer or seller, have an advantage! In this scenario, there is often, significant competition, and negotiations, and negotiating expertise, make a significant difference! Sell your house fast in Atlanta

 

4. Buyers Market: We consider it, a Buyers Market, when/ if, the number of houses, available, and listed, for – sale, exceed the number of qualified, interested buyers! Homeowners must be more flexible, and marketing, often, matters more, under these conditions!

The better you know, and understand, the different types of markets, and the significant impacts, of each, the better, you will be able to adjust, to your benefit, and best – interests! The wisest approach, is, to avoid, the temptation, to try to get – greedy, and/ or, market – time!

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6 Factors To Consider Rising Home Prices!

Historically, the real estate market, was, somewhat, cyclical, where, Sellers, Buyers, and Neutral Markets, from time – to – time, seemed to hold, the upper – hand! However, we have witnessed, for approximately, the last year (or so), at, or near, record – levels/ rates of increasing prices! Some wonder, whether this will continue, and, if, so, for how long, while others, seem to believe, this will be the new – normal! Since, there are several factors, involved, this article will briefly, consider, examine, review, and discuss, six of the more relevant ones, and why they matter, and the potential impacts, and ramifications,

1. Mortgage rates: Never before, at least, in recent memory, have we witnessed this prolonged period of record, or, near – record, low mortgage interest rates! Even, a slight amount of rate increase, has, reduced interest, to some degree, so, what might occur, when the Federal Reserve Bank, raises the costs of borrowing, as many believe, will occur, at least, by the end, of next year. Since, every, one – percent, increase, in what one pays, increases monthly costs by over $60 per $100,000 – borrowed, per month, it is easy to see, the impact, and potential ramifications!

2. Supply and Demand: Like, most economic matters/ issues, the Law of Supply and Demand, applies, to housing, and real estate activities, etc! When, supply exceeds demand, prices go down, or stay – steady, and when the opposite occurs, rising home pricing, occurs!

3. Inventory: Homeowners create the second principle, by, whether, they are ready, and willing, to put their property, on the market, or not! This creates the degree of so – called, inventory, which begins the Supply and Demand, cycle!

4. Buyer interest/ motivation: It’s essential to differentiate between those, who, enjoy looking at real estate, and, truly, qualified, potential buyers! How much, and how long, a significant degree of motivated, buyer interest, continues, and, at what level, often, determines perceived values, etc!

5. Strength of economy: We have witnessed periods, which were, inflationary, recessions, depressions, and, stable/ stagnant, and few have been able to accurately, predict, the timing of these! How long, any economy stays strong, and/ or, is believed to, has impacts on buying conditions, and any willingness to purchase houses!

6. Perceptions: Often, perceptions are more significant than reality, in terms of the behavior of real estate buyers and sellers! When some perceive certain future possibilities, it often dictates their actions, and behaviors!