What affects the real estate market?

Answer 1

There are a lot of factors that directly and indirectly affect the real estate market.

There are 4 key factors that indictively affect how the real estate market condition changes. According to Investopedia, these are:

1. Demographics - are the data that describes the composition of a population, such as age, race, gender, income, migration patterns and population growth.

2. Interest Rates - Changes in interest rates can greatly influence a person's ability to purchase a residential property.

3. The Economy - Another key factor that affects the value of real estate is the overall health of the economy. This is generally measured by economic indicators such as the GDP, employment data, manufacturing activity, the prices of goods, etc.

4. Government Policies/Subsidies - Legislation is also another factor that can have a sizable impact on property demand and prices.

All of these directly affect the real estate market, and under each factor lies more specific, indirect factors that also tweaks how the market perfroms both in local and nationwide markets.