Many of us, who are involved, on a daily basis, with the many details of real estate, get so involved with buying, selling, marketing, and (helping increase in a good way) homes, and making listing presentation, we often ignore, the many money-based factors and other conditions, which hit the real estate market. Some of these factors are local, in nature, while others may be national or worldwide. Some are actual, while others are perceived (for example, belief in their job security, negative possibilities because of some action taken by government, etc). With that in mind, this article will attempt to briefly think about/believe, examine, review, and discuss, how the overall (
How did Real Estate affect our economy
1. Mortgage/ interest rates: When the Federal Reserve announces they are raising, planning to, or (thinking about/when one thinks about) raising rates, in most events, mortgage rates follow. About 2 years ago, we saw (in the past) low mortgage rates, and today, while, from
2. Taxes: When local real estate taxes are (compared to something else) low, the effect on monthly carrying charges, is a positive, for the housing market. When they rise, they cause homeowners, to have to pay more monthly. Some houses, neighborhoods, areas, counties, etc, have lower taxes than others, so when one area suddenly raises rates, that local market is hurt, and certain surrounding areas benefit. Also, in higher tax areas, such as New York, New Jersey, Connecticut. Massachusetts, Illinois, California, last year’s tax laws (and law making), may have potential
3. Jobs: Do people perceive, they have job security? Is the job market, strong, or (compared to other things) weak? Are incomes increasing? The more confident, and comfortable, qualified possible buyers, are, the stronger the market.
4. Overall (
These items are just the tip of the factors, which affect the housing market. Be aware (of something dangerous), prepare, and plan in the same way/in that way.