Overview of 2011 Real Estate Market Trends:
Since being a real estate developer is a very serious business which involves large amounts of cash, it begins with cash a person has saved and that becomes the foundation of their investment. Let’s look at some of the factors affecting today’s market.
- The national and international economy
- The wealthy (those on the high end) as opposed to the people who have gainful employment (low end). Therefore, the people who are not employed or who earn low wages, won’t be on the market for buying a house.
- Interest rates are on the increase.
- Supply and demand – For the real estate developer, if there’s a limited demand it will bring down the housing prices. Therefore, today’s economy can be a negative factor in real estate sales.
- Confidence among consumers is still good and owners of real estate are used to fluctuating markets, such as peak periods and slow downs. A down market therefore can be a good time for a real estate developer to buy and flip; making a nice profit.
- Housing prices have gone down enough and there is demand by sellers and bank or lender owned property.
Photo Credit:Mark Moz