The real estate market fluctuates every time, going up and down depends on the season and other factors. But when a market truly tanks, there is generally an excess of inventory that drives prices down and homes take longer and longer to sell. Changes in government affects the market, but it can take at least a few months, if not years, for those consequences to be reflected in price and inventory numbers, experts said.
- Increasing Inventory
Added inventory is the sign of a less-than-positive change. Demand for housing in areas where there’s a lot of job turnover, is often more reliable than tier II destinations.
- Prices Start to Tumble
It is when sellers start lowering asking prices. Inventory has been so constrained for so long; and unlikely prices will decrease significantly.
- Keep an Eye on Currency
Home prices are rising faster than salaries - Currency markets are the key because they attract so much international attention. Experiencing some fallout in currency results Real estate transactions became much more expensive to those buyers and it showed in slowed sales.
- Government Policy Changes
Policy changes are the major thing to keep in mind when thinking about real estate investments, experts said.
When governments propose new taxes or raise interest rate, which makes market jitters.
- The Overall Economy and Stock Market
Foreign Demand Slows - Investors have to keep an eye on the general economy. If Stock market is doing well, at least we know the demand will remain solid for investment properties and vacation homes.
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