Several factors affect property prices, specifically, the economy, interest rates, mortgage availability and supply and demand. Since each location is unique, it’s difficult to generalize how properties are selling on a national level. That’s why your local market conditions are your greatest predictors of how quickly your home will sell and at what cost.
If you are in the market to buy, sell or flip a property, let’s talk a bit more about the role of your local market conditions and their impact on property prices.
Supply and Demand
Real estate is more than just buying and selling properties. A lot goes into this industry, including the relationship between supply and demand. In economics, it’s believed that if there is a large supply of something, the cost for it will decrease. If something is more limited, prices will increase.
In this case, take a look around at the inventory of properties available in the local area. Is there a lot to choose from, or are the choices more limited? If inventory is low, think about how your property is unique and why it might stand out.
Something else you want to look at is the location of the property. Location has its own impact on a home or business, as you could have a tiny fixer upper in the middle of a great location that sells for top dollar, or you could have a beautiful, newly reconstructed home that doesn’t sell in an undesirable neighborhood. Always do your homework and understand how others view the neighborhood and community.
Buyer’s or Seller’s Market
Another factor to consider is whether you’re dealing with a buyer’s market or a seller’s market. Again, it’s hard to generalize because each community is unique and things can change on a dime.
According to one recent article, it is determined that we are in a seller’s market at the moment because of low inventory and increasing home prices. If buyers see a good home, they won’t wait. And they are more likely to bid higher to get the property because they know there isn’t much available.
If you are interested in your own fix and flip project in NY, PA or NJ, be sure to pay attention to the local market conditions before making the investment. It’s more than the property you have to pay attention to. You must consider how the local housing conditions will make it easy or difficult to sell.