Posted on: 14 October 2019
If you have the goal of selling your house in the next year, now might be a good time to start learning about how the real estate market works. This market is like other commodities, where it has highs and lows, and understanding how this works can help you make a good decision about when to buy a house. Here are several things to learn about that relate to the current real estate market and how the market affects selling a house.
Interest rates affect real estate transactions
The first thing to understand about the real estate market is that interest rates affect it a lot. Interest rates are controlled by the government, and they play a big role in whether or not people can afford to buy homes. When rates drop, more people can afford to buy homes, and this causes home sales to increase. When rates increase, fewer people buy homes because homes are harder to afford during times like this.
Time of year affects real estate transactions
The second factor that plays a role in the real estate market is timing. Timing refers to the time of year you are shopping for a house or trying to sell a house. The most popular time of year for people to buy homes is in the late spring and early summer. Many people do this to move during the summer months, and people do this because this is when a lot more homes are placed for sale on the market. If you buy a house at this time, you will likely pay more for the house than if you bought a house in the winter months.
Supply and demand affect real estate transactions
Supply and demand is another factor that affects real estate transactions. When demand for homes is really high, prices will rise, while prices will fall when the demand for homes is lower. Supply affects home prices too, as when few homes are for sale, the prices for these homes will rise. When there are a lot of homes for sale, the prices may drop. It is important to understand this when you are preparing to buy or sell a house.
These are three of the most important things to know and understand about how the real estate market works. If you are ready to make a home purchase or sell your home, talk to a local real estate agent.Share