Property price

The real estate prices do not stop surprising. If we observe the real estate market for a reasonable period of time we realize that it is characterized by having two cycles, one of “rise” and another of “fall”. The first are the periods when prices in the market shoot up that is almost inevitably and which are followed by other periods when prices plummet. Actually, there are people who make a living with these cycles, they are people whose study of property markets has taken them to a point where they can count on sufficient reliability when they are seeing a “fall”, which is at this point when they buy the property, and then during the “rise” it sells it, practically making its August. Prices in most areas are influenced by the strength of supply and demand. But for some reason, the market prices real estate seems to be dictated what comes across as set very different forces.

Actually the faltering property prices are still under the control of the forces of supply and demand. The fall in prices occurs when there is a real estate “excess supply” , in comparison with the effective demand in those periods of time , while the increases occur when the demand exceeds the supply . But as it turns out, the dynamics of supply and demand in the housing market in turn, tend to be under the influence of other deeper factors; so if we look at the dynamics of supply and demand they are in fact manifestations of other factors.

Different factor which effect the real estate market

These factors that influence property prices can be classified into three categories, political factors, economic factors and social factors.

Now we are going to try to explain what can be termed as a political factor, what can be termed as an economic factor and what can be termed as a social factor? It may be difficult to distinguish these factors, but through examples, this distinction can be solved quite clearly.

Starting with the political factors that can affect property prices, we should look at the government that is in power, since different governments have different policies on real estate. Something like the approach of elections, and the uncertainty with which such periods tend to come, can cause a fall in prices.

Economic factors and real estate

In terms of economic factors , we are facing something like the availability of easy credit , this can cause an explosion as people armed with money, begin to pursue the few real estate that may be available for sale at that time . We are also looking for something like improving economic performance, which often puts more money in the pockets of the people eager to invest in the real estate sector, which effectively raises the demand, and subsequently raises prices.

The important thing to keep in mind in all these things is that they are always in a state of flux. For that reason, you should not expect prevailing conditions to hold forever, which is a mistake that many people make when making the decision to buy or sell a property. You can also take help from any expert like Larry Weltman. For over a decade Larry Weltman Toronto has advised the real estate industry on various fronts where he has expertise and where agents have needs.