5 Factors that Largely Influence the Property Market

Planning to invest in real estate? If so, there are a lot of things you will need to learn, this includes the driving forces behind the property market. You must understand what makes the prices of properties rise and fall to make well-informed decisions. If you are interested to learn more, keep on reading as we’ll talk about these factors in a little more detail.

Before we start, if you want to learn more about assessing real estate properties and their potential, consider taking real estate courses. This will equip you with the knowledge and skills to be able to make informed choices.

Economy

The overall health of the economy affects the property market. Economic indicators like gross domestic product and inflation will have critical roles in the property market. Currently, the global economy is experiencing a massive slowdown because of the COVID-19 pandemic. This has already and will likely continue to have a negative effect on the property market. Governments are implementing temporary measures to help revive the economy, such as by introducing tax cuts. It is important to note that these temporary measures can impact the prices of properties for a significant amount of time.

Interest Rates

Just like in any other investment, interest rates will drive value in the property market and will dictate prices in real estate. It will have a profound impact on financing and mortgage rates. When the interest rates are high, buyers will be more hesitant. When it is low, on the other hand, more buyers will be interested since it will make property financing more affordable.

Location

Anyone in the real estate sector will know how important location is and how it can significantly impact the prices of properties. Those that are more convenient and accessible will command a premium price. Yet, many buyers will not mind paying the high cost in exchange for its many benefits. So, if you are on a budget, then you should be ready to potentially compromise location.

Demographics

Age, gender, race, and socioeconomic status are some of the most important demographic data that will have a huge impact on the property market. Major demographic shifts, such as baby boomers transitioning into retirement, can affect demand. More so, millennials are projected to buy the most houses this year. This means that those in the real estate industry should be more proactive in steering their marketing strategies toward millennials.

Government Policies

From tax credits to subsidies, government policies will have a huge effect on property demand and supply. The current government initiatives will drive the performance of the real estate market. For instance, in 2009, the United States introduced the first-time homebuyers tax credit. This is a move to initiate the sluggish economy. As a result, there has been a spike in demand.

From the economy to government policies, several factors will impact the property market. Whether it is in residential or commercial real estate, understanding the factors mentioned above is important to make better informed decisions.

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website. As an Amazon Associate, I earn from qualifying purchases.

You May Also Enjoy

Breaking News

Popping the Asking Price Bubble

Where in the Uk Can Buyers Snap Up Property Bargains and Where Properties Go for a Premium Above Asking Price   New research from fast selling property company, Upstix has uncovered the UK’s most surprising postcodes for snapping up a property at bargain prices this year, highlighting a widening gap between sellers’ expectations and the…
Read More
Rightmove logo
Breaking News

Highest demand to lease office space since pre-pandemic

The latest insights from the UK’s number one commercial property website Rightmove, reveals that the number of unique enquiries to lease office space is at its highest point since pre-pandemic, as businesses look for spaces that meet modern requirements. Demand to lease office space is 19% higher than the same period a year ago and…
Read More
Planning disputes on new build land
Estate Agent Talk

Planning consultations for major infrastructure to be streamlined

Robert Bruce, a planning and infrastructure partner at law firm Freeths LLP, said he: “Welcomed the change as a significant step to speeding up the DCO process and the focus on the quality and effectiveness of the consultation, rather than box ticking and a risk averse approach to pre-application consultation due to the current legal…
Read More
Breaking News

‘The property ladder pulls further away’ warns Open Property Group

For many first-time buyers across England, the dream of homeownership continues to slip further out of reach. Despite rising wages, soaring house prices are making it harder than ever to get on the property ladder. A leading UK professional house buying company ‘Open Property Group’ based in Buckinghamshire UK, has raised concerns over the ongoing…
Read More
Estate Agent Talk

How Long It Takes to Buy a House in the UK: 5 Common Delays That Can Slow Down Your Home Purchase

Wondering how long it takes to buy a house in the UK? The average timeline ranges from 8 to 22 weeks, but even that can stretch significantly due to unexpected delays, especially if you’re a first-time buyer or caught in a chain. That’s why working with experienced professionals like Belvoir — one of the UK’s…
Read More
Love or Hate Rightmove
Breaking News

Rightmove to host Renters’ Rights Bill webinar with Guild of Lettings

Rightmove is hosting a live and interactive webinar session with the Guild of Lettings to help agents get Renters’ Rights Ready. The webinar will take place from 10:00am – 11:00am on Wednesday 23rd April. Susie Crolla, Managing Director for the Guild of Lettings, will be joining Rightmove to help agents with questions they may have about…
Read More