Mansion Real

Posts Tagged ‘Going’

At the moment (late 2009), it seems that real estate values may have stopped falling finally. Are they headed back up now, or are we in for a period of stable prices that barely move for years? Or are they going to start dropping again? I suspect we are in a slow recovery, but let’s look at some of the things that determine prices. Watch these factors and you can make your own predictions.

Supply

The state of housing supply, like many other factors, is not the same in all parts of the country. Some areas have enough empty homes to meet demand for a long time to come. In other areas the building boom never came, and so the supply is more in line with demand.

In general there is an over-supply in the country still. Watch as that is eaten up and at some point prices may spike upwards, since it will take some time for builders to realize it is safe to build a few homes as speculations again. If you can’t find the statistics you need easily for your area, you can call the local board of realtors and ask how many homes are sold each month.

Read the rest of this entry »