Radio Spot #14 - "Real Estate Trends II"
Identifying Key Trends in the Real Estate Market.
Watching, evaluating, and monitoring trends (like good stockbrokers do with the stock market) can pay off. Once you understand how they can affect real estate, can truly make the difference to your success as a home buyer or investor.
In the previous spot, I stressed the importance of knowing what's going on in your local market. I also emphasized the importance of paying attention to broad demographic trends (i.e. Baby Boomers hitting retirement age.)
THIRD: Watch the value of the American Dollar
A falling dollar affects real estate in two major ways. It makes American real estate more affordable, and therefore even more desireable to foreign buyers and investors. Vacation homes, luxury homes and urban property can benefit dramatically from the exchange rate. A falling dollar means inflation...higher prices for assets and commodities, including building supplies, transportation and ultimately the cost of a home.
FOURTH: Watch interest rates.
They're statring to rise from one of the lowest historical points ever.
BONUS: Watch for the foreclosure inventory.
Foreclosure inventory messes with the market by artificially increasing the supply which will immediate impact demand and ultimately could lower prices. When banks are holding on to foreclosures doesn't do any good to the free market. UGH!!!
Finally, a great article which addresses the forecast for 2011's real estate market. I was able to listen to Washington State's Chief Economist Arun Raha when he made the report.
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