For millions of people, real estate in the form of their homes and land is their largest single investment, a leading indicator of the health of the economy and a key source of household income. In turn, the real estate market profoundly influences the jobs in home improvement, construction, lending and insurance that support it.
Real estate market is the collective market for residential, commercial and industrial properties used as a residence or as an investment or rental (Colliers International, 2020). While each local market operates independently, overall trends are dictated by general economic and demographic factors such as employment and population growth, inflation and interest rates.
As an investment, real estate provides income through appreciation and rent. A real estate investor must keep abreast of industry trends to maximize their returns and protect their capital. They may do so by monitoring the latest economic news, analyzing government policies and taxation regulations, tracking interest rates, and keeping up with developments in technology (Bernstein, 2021).
The real estate market can be classified as a buyer’s or seller’s market based on the current supply and demand for property. When demand is high and the market favors buyers, interested parties can expect to receive competitive offers on their home and be able to negotiate for the price they desire. Conversely, a tighter market conditions can lead to a shortage of available properties and increased competition for those who wish to sell their home, forcing prices higher.
About the Author
