The real state is one of the most valuable, but also the most expensive, assets of people and it is one of the markets that will always remain alive, no matter what happens. Instead of going from place to place and inspect the houses, you can check websites like https://www.dignityproperties.com/ to see what the market offers and cut down the time needed for finding the perfect home.
Thanks to this, we can get the house easier. But, what is the perception of the real estate market? How does everything work and when do you need to sell your house? First of all, let’s explain why the prices go up and down.
How come that real estate prices are fluctuating?
The prices change due to the market needs and the math is rather simple. The more people are looking to buy a house, the price tag will be expensive. Also, if people are starting to move to a certain part of the city, which was not populated that much, it can lead to expensive homes.
Of course, in order to happen, the people that settle down in the new area have to be middle/upper class as the poor cannot contribute to the state and therefore the area they live in isn’t expensive. Besides this social factor, the material that is used for building can influence the price. If the import of marble suffers from the additional taxes that have to be paid, it means that the houses that have marble in their structure (whether inside or outside) will become expensive drastically.
What does influence the home value?
In the 1970s, the average price of the home was around $15,000, depending on the type of estate and the location. Today, some 50 years later, the average price you would pay for a house is around $150,000, which is 10 x bigger. The first thing that influences the prices is the economy – better the overall economy, higher the prices of homes.
The second thing is the mortgages that people use to buy houses. As banks lend more money, the housing market becomes more expensive. Also, the increased population may lead to higher prices as the demand becomes higher and it is natural that people will compete for the house by offering higher prices. The final thing is the growing neighborhood that will increase the price as it develops and attracts more people. Of course, there are a lot of other factors, but these are the most important ones.
When to sell the house?
The final and one of the most important question is when to sell your house. Well, this is a tricky question as it depends on a lot of things. Sell it only when you do not want to live in it for some reason or if you cannot afford to pay taxes. The researches show that is very likely that the real estate market will become even more expensive. But if you really want to sell it, remember that you should sell when the prices start to rise. Do not sell when nothing happens and the prices do not go up or down.