The Real Estate Market

Posted by discuss | Real Estate Articles | Wednesday 1 August 2007 4:23 pm

Timing is everything when it comes to the real estate market; however, there is a lot of guesswork that goes into the decision as well. Since you’re probably ready to buy something when you begin your search for a house or other real estate property, here are some other things that you can keep in mind to get the most out of the current economic climate.

The economy goes in cycles. One day it’s up, the next it’s down. How can one even predict where it’s going? Well, the short answer is that they can’t and neither can you. All you can do is watch for overall trends to see if the housing market is ready for you. To do this, you can begin by looking at and studying the local newspaper classifieds and websites. Are there a lot of real estate properties? What are similar properties to the one that you want selling for?

By taking the time to look and research the real estate market, you will begin to understand that supply and demand are involved quite dramatically. For example, in New York City, a one bedroom apartment can be rented out for thousands of dollars while a two bedroom apartment in Ohio can be rented for only a few hundred. What’s the difference? The difference is that in New
York, there are a whole bunch of people, but not as many apartments, so realtors and landlords can charge much more.

When you start to watch the real estate market, you might find the same thing. In certain areas of the country, certain houses and buildings can sell for much more or much less than in other parts of the country. Now, whether these prices will remain constant is anyone’s guess. But, you can be educated about it. On the West coast, you will find that housing costs are skyrocketing, but so is the population. This means that housing costs are going to stay high for the moment. Eventually, they will have to go down because no one will be able to afford the houses anymore. But for now, business is booming.

One of the times that are good for house buying is during a depressed economic period. This is when prices are lower, but interest rates may be higher. If you are already able to afford the home that you are looking for, then the rates will not affect you as much and you will be able to get a great deal on a home. Of course, if you are selling your home at the same time, you may find it more difficult. On the other hand, if you are trying to sell your home during a ‘hot’ market phase, you will rarely have a problem because everyone wants to buy, but finding a good price on a home may be difficult. It’s all a matter of having good timing and a bit of luck.

Another factor in the decision to buy a home might seem like a matter of semantics. Are you looking for a home or a house? A home is a place that you could stay in for the rest of your live. This kind of real estate might be costlier because it will have everything that you’ve ever wanted, but at the same time, you will be staying there for a long time and paying off the mortgage.

If you’re just looking for a house, then you might want to spend a bit less money. A house is really just a place to put your things. This is a move that many younger couples start with as they’re not sure if they will be moving in their careers or if they will need more space for a child or many more children.

Deciding between the two is a personal decision, but it can affect when you decide to buy a home. If you’re just looking for a house, you don’t need to study the trends; you’re just looking for somewhere to start out. But if you’re looking for a home, then you will want to take your time, research before you make that large of a decision.

The decision to buy a home is just like any decision to buy real estate. You want to make sure that you are ready for a long term commitment and to the realization that you are making an investment. You will also want to consider where your life might take you and your business or family before you decide on a more permanent location. And even though price is always an
issue, it can be easier to manage over a thirty year mortgage.

About the Author:
Leon Belenky is a realtor specializing in Miami Real Estate and Condos. He has brought Miami MLS into the online world via his website SunnyIslesMiamiRealEstate.com.