What are key factors that drive the Real Estate market?

What are key factors that drive the Real Estate market?
August 2, 2019 No Comments Affordable Housing, Public Awareness, Real Estate PARAMHOMES
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Real Estate Sector in any country is one of the most significant parts of people’s wealth as they save their income and when they find themselves capable for the investment, the first thought comes out to be the realty sector. According to most of the surveys, the size and scale of RE market make it an attractive and profit-gaining investment for many investors and buyers. This article will look into the major factors that drive the huge market of Real Estate.

Factors That have Influence on Real Estate Market

1. Demographics

Demographics can be defined as the composition of total population that includes age, gender, income, age, race, population growth patterns and migration. These factors are vital in real estate pricing as well as what property type is in demand. A large impact can be made with a major shift in demographics of any nation.

2. Interest Rates

Interest rates tend to show a major impact on the market of real estate. Any variation in interest rates can drive the person’s ability for buying any type of property either it be residential or the commercial. It is a vicious cycle where lower interest rates leads to lower cost of obtaining loan to buy a property ,thus  creating high demand and high prices for the real estate. Similarly, high interest rate leads to high cost of obtaining loan, thus lowering demand and prices of real estate properties. This simply shows how the interest rates drive the real estate market.

3. The Economy

Another main point that has an impact on the real estate market is the economy. The economy is measure through the economic indicators such as level of employment, GDP (Gross Domestic Product), inflation, prices of goods, manufacturing activities and others. In simple words, the economy is stagnant and so as the real estate. 

4. Government Policies/Subsidies

Government policies largely impact the real estate market. The prices and demand of property to some extent also depends on legal rules and regulations.

Taxes, subsidies, rebates and deductions these are some of the ways in which government can temporary boost the demand.  Awareness of government incentives can help in determination of supply and demand. According to experts, the tax incentive alone can lead to huge increase in demand of homes by homebuyers. Thus, the demand and supply of real estate property can be determined by keeping an eye on these factors that have major influence on the real estate properties.   For More Details: http://www.paramhomes.com/

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