Real Estate Information | Let us create a 3d Digital eBook for you! DigyCat.com |
|
The Real Estate Cycle
The real estate cycle, like the business cycle, refers to the activity of the real estate market as it reacts to the forces of supply and demand. Supply and demand. When demand for a product, such as housing, exceeds the supply, the price for the product tends to increase. In real estate this period is often called seller's market. Higher prices encourage the suppliers, in this case homebuilders to increase production. As production increased, more of the demand is satisfied until a point is reached where production outperforms demand. At that point, prices begin to full and production will diminish until demand catches up with supply, and the cycle begins again. This period is called a buyers market. Factors influencing real estate circles. Mortgage funds. The availability of mortgage funding affects both supply and demand for housing. In most cases the buyer does not have sufficient assets to purchase a house outright. Most housing is either built purchased with money borrowed. The availability and cost of this money directly affects both the supply and demand for housing. If a local area is experiencing prosperity there should be funds available to finance the construction and purchase of housing. Population. Demographics refer to a study and description of the population of an area. Demographics included such factor as page, education, gross income, disposable income, number of family members, and savings and spending patterns. Also studied are patterns of migration and establishment of employment centers. Social attitudes. A major factor that has impacted both the availability of housing and mortgage funding has been changing social behavior patterns of the population. In modern example is the increase in the portion of the population that is in its prime home buying years. Both baby boomers and their children are now seeking housing, which has been a major factor in demand for housing that has pushed up prices in the past decade. High divorce rates and a trend toward later marriages have also stimulated demand because there are few people per household. Political activity. Because the national government is the largest borrower in the country, its activities and have a huge influence on the economy. Deficit spending by Congress forces the government to borrow money, making less money available for construction and home loans. On the other hand, action by the Federal Reserve to loosen credit with rapidly increase capital loan money supplies. Regulation. This regulation takes the form of federal, state and local tax laws, environmental regulations, lending laws, local zoning and building codes. The vast majority of these laws and regulations have been created to protect the environment, promote public safety or to protect consumers from predatory lending practices. Predatory lending includes usury, deception and fraud. Individual home ownership is encouraged and the federal and state levels by the provision for the home mortgage interest deduction in the income tax codes. However, at the local level, properties are subject to property taxes. These taxes are necessary to provide local services such as streets, lightning, schools, fire and police protection. In some areas, communities have implemented a impact fees. Impact fees are charged to all new housing that is developed within the community and I levied to pay for community infrastructure. Martin Lukac, represents, #1 Loans USA(http://www.1LoansUSA.com), a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more: info@1LoansUSA.com
MORE RESOURCES: |
RELATED ARTICLES
Selling by Owner Tips Do strangers scare or intimidate you? If you're planning to try to sell your home yourself, you'll have to get used to it. You'll also be opening yourself up to potentially dangerous situations and legal liabilities. Ten Myths Of Real Estate Investing Is real estate investing only for the wealthy? Can you buy with no money down? Do you have to know the "right" people? Let's answer by looking at some of the myths of real estate.1. Top Tips for Buying and Selling a Home BuyersLooking for a home-Use Internet for overview of properties, communities, and schools.-Visit potential neighborhoods at different times of day. How To Negotiate A Higher Price For Your House Negotiation is where many FSBO home sellers really have problems. The wrong attitude or a slip of the tongue could cost you thousands. Realty Agents: Don't Ask Don't Tell? Real estate stories radiate from the water cooler and cocktail parties like a brush fire out of control. Like early stages of fires, real estate transactions start out manageable, but occasionally real estate consumers fan the flames because of inexperience, and some real estate agents misplace the water buckets. Making a First Impression When Selling Your Home So you've decided to take advantage of the booming real estate market and put your house up for sale. As you know, buying a house is the most important purchase a consumer can make. What To Expect From Your House Appraisal Having your house appraised can be a scary step in the moving process, especially if you don't know what to expect. Will your house pass muster or will they find some hidden defects and problems lurking in the basement and attic? Should you scrub the house clean?Don't worry - this isn't a test of how clean you keep your house or even if your house has problems (that will be for the home inspector to find out). Real Estate Investing By The Numbers Just like most things real estate investing can be broken down into easy to learn step.Step One - Learn the basics:Ownership of real estate is evidenced by a valid deed. Destin Florida Triples In 3 Years Do you want to see something that is absolutely amazing? Let me show you what has happened in Destin, Florida over the last 3 years. Back in August of 2002, the median price of a home selling in Destin was $229,000. Real Estate Problem Solver IntroductionThere are many areas one can invest in. Since I was 15 years old I have looked for the fastest, most effective way to accumulate a lot of wealth, with the least amount of risk. Selling Your Home - A FSBOs Guide to Keeping It Safe Sellers need to keep their safety in mind when prospecting potential buyers. The real estate industry has seen a problematic climb in assaults towards realtors, and so is the concern for those who are selling their own homes. Market Reaching its Peak I do not profess to "Know" what the real estate market will do in the next year or two, but I would like to share some information with you that might help you in making decisions regarding buying or selling property in today's market. The following information relates to the types of mortgages that are currently being taken out by those who are currently purchasing or refinancing homes. Investment Real Estate Secret: Buy a House Today, With No Money Down If you've read my article "Purchasing Property With No Money Down. . Flipping Fixers: Using Transformation Psychology for Top Dollar Satisfying and lucrative real estate investment depends upon your correct assessment of profit potential, of course, but your ultimate success depends on your ability to transform a fixer into a dollhouse. The renovation process involves physical work and choosing the best supplies, in order to create maximum positive emotional effect and profits. Utah Real Estate Looking to buy real estate in Utah? The market has changed over the past few years and is going to continue to change over the next few (drastically) and here are a few things you should consider before buying any Utah real estate.First, the Olympics didn't affect the state as much as people thought it would. Are Signs Important? Signage, though quite fundamental in nature, plays an important role in the home selling process. The Yard Sign should be two-sided, easy to read, and look great (defaced or worn signs can negatively impact curb appeal). Property Investing Secrets 8 Property Investing: A Buyer's Secret Weapon When Purchasing Real EstateMy friend, Roger, does property investing and is a licensed real estate agent. Recently he looked at a property in another state that was probably worth $225,000. Real Estate: Choose a Realtor You Can Trust Today's volatile real estate market involves complex laws and fluctuating financial conditions. Maybe you've outgrown your first home; maybe you're in the process of turning over your fourth. Buying Property In Spain It's high time someone advocated the use of common sense and suggested that those people looking for that dream home in Spain actually apply a cautious approach to buying!After all, real estate is such a significant purchase for most people that you'd think people would be only too ready to think twice and long and hard before committing to purchase - especially when buying abroad where the rules and customs differ greatly to what we may be used to.But it seems that so many people are seduced by the sunshine in Spain and by aggressive and slick agents and developers that they are willing to purchase unseen, to buy off-plan or even remotely via the internet and to basically purchase without the slightest clue about just what it is they're getting for their money. Burn, Baby, Burn! Luxury homes are lots of fun to inspect. Sure, the pay is better too, but mostly it's just fun to see how the other half lives! I also get to meet those people who have reached such a level of financial success that they are buying a home that seems like it could have been a boarding school!One of the fun aspects of inspecting large and expensive homes is seeing furnishing and interior design work at the highest level. |
List4Sale Domain Is For Sale - $10,000 For Enquiries eMail Us © www.List4Sale.biz 2012 |