Have you ever wondered how or why the real estate market follows cycles?
As with most concepts, ideas and opinions vary, and very few scenarios should include a blanket statement answer. Fact of the matter is that many aspects contribute to each area, with such complexity that truly determining the entire list of factors that affect any market cycle change, or series of changes, is not realistic or probable.
With that being said, there are certain high level aspects nationally and locally that contribute, affect, and determine the transition and current state of any real estate market. If you’re a real estate professional, investor, or financial company, you’re probably already aware of national and local factors that contribute to the market cycle changes within the real estate industry.
Why though are national and local factors important, even for consumers (buyers and renters) and non-industry related professionals?
If you can recognize, even as a one-time home buyer, the current national and local factors that contribute to a real estate market cycle, then you can feasibly understand, with educated reasoning, how those factors help you make a smart financial investment that ultimately allows you to Know the Home Before You Buy™.
As discussed by Dean Graziosi, one of the most highly acclaimed real estate investors in the country, various components exist within both national and local real estate market cycle factors:
- Interest Rates: (High Importance)
- Business Cycles
- Flow of Investment Funds
- Cataclysmic Events: (Usually Unpredictable)
- Supply & Demand: (High Importance)
- Neighborhood Trends
- Migration & Job Growth
- Development Plans
- New Construction
Next week, we’ll dig a little deeper into each national factor component, exploring more information and aspects that relate and contribute to the current, past, and future predictability of national and local real estate cycles.
Until then, Know the Home Before You Buy™ by visiting www.NationwideHomeFax.com for all of your national real estate information needs & be sure to schedule your next seller’s inspection, pre-listing inspection, or home inspection with Home Fax™ Inspections.
Nationwide Home Fax™ LLC, its affiliates, The Home Fax™ Blog, and the author of this posting are not affiliated with Dean Graziosi, or any of his entity(s) or party(s), and have referenced information used through this posting strictly as a secondary source from Mr. Graziosi’s book How to be a Real Estate Millionaire, without obligation or compensation.