National & Local Real Estate Market Cycle Factors

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:

National Factors:

• Interest Rates: (High Importance)
• Business Cycles
• Inflation
• Flow of Investment Funds
• Cataclysmic Events: (Usually Unpredictable)

Local Factors:

• 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.

Informed home buying decisions: Why everyone must Know the Home Before You Buy™

 "Decision making is complex. On our own, our tendency to yield to short-term temptations may be too strong for our rational, long-term planning." -- Peter Singer

The pattern of poor home buying decisions and horror stories of withering financial investments in property purchases never seizes to amaze us.  Whether it be the standpoint of the “unnecessary” expense of a home inspection, to the lack of research and informed decision making conducted prior to purchasing a property, to the economic disparity that leads to poor home maintenance -- more and more people continue to enter into poor home buying decisions. 

As a result, many poor home buying decisions have negatively impacted home sales and values, while increasing the rate of short-sales and foreclosures.

The cost of this may be small or great, quickly encountered or experienced later, but one point is consistent for most people: the purchase of a property is one of, if not the largest investment you will make in your lifetime.  How many times will you spend $100k, $200k, or maybe even a $1,000,000 on any one purchase in your lifetime again? Not to mention, don’t we all want ourselves and our family to be happy, safe, and comfortable with the home we live and invest in?  

Let’s face the facts…

We’ve all heard of or experienced the horror story of a new home purchase, rental property, or new move.  Most people consider a home inspection through the process of purchasing a property, but many do not understand the various aspects of the Home, Homeowner, Neighborhood and Community which contribute to their overall long-term happiness, return on investment, and susceptibility of that purchase or lease agreement. 

Inadvertently as a result, poor home ownership decisions and a lack of informed decision making has fostered a higher demand for rental properties; currently averaging $904 per month nationwide. Prior homeowners, and many others, fear the idea of property ownership based on past mistakes, distorted views from TV shows and opinions, and financial struggles that have led them to few additional options other than rental tenancy. The fact of the matter is that many prior homeowners, young adults, and current tenants were never aware, or are still unaware of the options, assistance, and information services available to them.

Next week we will review the Home Fax™ Report options available to buyers, sellers, renters and investors for home purchases from Nationwide Home Fax™ and home inspections from Home Fax™ Inspections.  

The Home Fax™ Excerpt Re-Cap

In case you missed any recent blogs from The Home Fax™, check out these quick excerpts and references. When you're finished, don't forget to cash in on the THANKS50 promotion for 50% off any inspection from Home Fax™ Inspections. Hurry, the promotion ends on 12/30/15 and limited scheduling dates are available!

• #1: Agents, are your clients getting the most out of their home inspection? 

A quality home inspection reaches beyond the scope of a one-day, one-report consultation. Many home buyers have a quality agent who understands and truly cares for their needs. These buyers are educated and informed along the way, leading them into home ownership with success and confidence.

• #2: 3 Uncommon Home Inspection Benefits

An industry with relatively no change or adaption requires changing, at least a new perspective or unique way of presenting the information. Inspection companies, such as Home Fax™ Inspections, utilize creative ways to enhance and change the way inspection reports are viewed.

• #3: Seller’s Inspection Advantages for Sellers, Agents & Buyers

Although buyers are most commonly known for having a home inspection completed, many sellers and agents are starting to see the enormous benefits from Seller’s Inspections and Pre-Listing Inspections. 

• #4: Who’s controlling the inspection process?

Learn how to maximize your investment, sale price, or commission by controlling the inspection process as a buyer, agent, and seller. 

• #5: 4 holiday safety tips & touch ups for around the home

Thanksgiving, Christmas and many other holidays bring families together for many reasons. Use these four holiday safety tips and touch ups for around the home as you prepare for your special get together! 

Next Monday we will review lighting and decoration safety tips for around the home as families tend to complete these festive tasks just before the beginning of Christmas. Until then, always remember to Know the Home Before You Buy™ www.HomeFaxInspect.com & www.NationwideHomeFax.com