Real
estate is affected by the economic principle of supply=demand. When supply
increases and demands remain the same values have to decline. While if supply
decreases and demand is stable or increases then values have no choice but to
depreciate. Therefore any new construction projects have to have at least a
small impact on value.
Finding out what new construction
projects are in the works is easy, go to your local planning board and ask them
what projects are about to be started. You can also find out what other
projects have been submitted for approval and will be coming down the line in
the next 6 months or upcoming years.
some property values are based on
subjective answers from residents living in a certain home, so the given
numbers , and real estate evaluation may be hanging on a wishful thinking
instead of a real appreciation . This is where real estate auctions come in
picture, to inform potential clients about the property, and the investment
possibilities, giving them a clear image of the real estate's worth.
One of the key factors is the rate
of foreclosures. So far it just keeps climbing. And when banks take back those
houses, they can't sit on them. They need to sell quickly due to regulations
regarding their capital requirements. That means they sell cheap, which helps
drive down prices in general. So watch for the rate of foreclosures to decline
before prices can stabilize or rise.
Another factor is the supply of houses out there. I was recently reading that at the height of the housing boom a large proportion of the homes bought were bought as speculative investments and second homes.
Population growth is another
important factor. Few people realize how much demand for housing was affected
by immigrants, legal or illegal. Many illegal immigrants were able to get home
mortgages, which has become harder.
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Value of Real Estate |
Unemployment is another factor. As long as the rate keeps growing it is going to mean fewer people able to buy a home. When you see employment levels rise, there might be more hope for real estate values to rise with them due to increasing demand.
There are many schemes offered by a variety of companies that will help you protect real estate values.
The concept is simple, provides protection of value (for several years), peace of mind, and comes at an affordable cost.
The price, at which you lock in your property, is the value you locked it in at and is the minimum price you will receive for it you will receive for it, should you decide to sell it.
How do these schemes work? Let's find out.
You therefore have a guaranteed value for your property even, if the market declines. If on the other hand your real estate value rises you can make a profit to.
In the event that home prices decline and you decide to sell, you may exercise your option. If house prices rise, you will probably choose not to exercise your option. It is up to you what you do.
In exchange for a small fee you have an option to sell the property at an agreed price. Which will have locked in the real estates value.