Reading the Relevant Factors
The more the economic experts ‘ views varied, the more we need to do our own homework when making future real estate decisions. This is particularly true when the economy of the nation has varying degrees of optimism and pessimism. To measure property health and viability, many homeowners use interest rates. But the national economic outlook isn’t the only relevant factor in your area’s property market health.
Educated real estate investors look to local factors that impact their investment beyond the macroeconomic outlook. Stability of local employment and consumer expenditure, for example, has a direct impact on homes and condominium supply and demand and consequently, their prices. New housing developments within the local market also affect supply, thus creating “markets for buyers.”
When you assess the value of your investment or try to predict a potential purchase’s future value, be sure to understand both your national economic environment and your local community’s specific factors.