Real Estate Blog

The term market applies more today to real estate than ever before. Why, because real estate related issues change daily, like the stock market, due to out side forces which can cause ups and downs in real estate financing options which effect real estate values. There are several driving principles in real estate markets.
Here are only 10:

1. There are thousands of real estate markets in the United States
2. Lender’s requirements to finance influences property values
3. Buyers’ costs to finance influences property values
4. The news media has influence on real estate markets
5. It’s about the local, state, national & global economy
6. Good for the stock market is not necessarily good for the real estate market
7. Increase in jobs = Increase in demand = Increase in values = Increase in options
8. Timing of action is important
9. Each real estate market is categorized and behaves differently
10. Interest rates and real estate prices are rarely both low at the same time
Buy Now, we’ve seen a lot of movement and even volatility in the financial markets as the debate over the Fed’s latest round of Quantitative Easing continues.

Quantitative Easing, here’s the basics. Quantitative Easing is the concept of the Federal Reserve becoming a buyer of treasuries and bonds to help stimulate the economy.
The Fed’s goals for this latest round of Quantitative Easing (dubbed QE2) are threefold:
1. To create inflation
2. To lower the unemployment rate
3. To boost stock market prices
While those goals may be good for businesses and the overall economy, we need to remember that all three are very unfriendly to mortgage bonds and home loan rates.
There are many more factors and important knowledge to apply case by case. Hiring a fully engaged Realtor can help you identify upcoming issues and strategies for your benefit. I’m going out on a pretty sure limb here, 2011 will be noted as the best real estate market for buyers, does it last all year, nobody knows.