The real estate market refers to the housing that is available for sale at any given time. Like any product, property prices can vary significantly, depending on the current supply and demand. When real estate is in high demand, prices rise. When there is ample supply, prices may drop. The current economy and interest rates also play a role in housing costs. The real estate market is fairly balanced in 2015, giving buyers more negotiating power than sellers.
The current economy and interest rates also play a role in housing costs
In a basic sense, the economy’s health often determines the amount of money available for spending. When the economy is slow, people tend to save more money and housing prices tend to drop. When the economy is doing well, people are more likely to take risks and make large purchases, which includes property. However, when the economy is doing well, borrowing also becomes easier, which can lead to increased interest rates. Sometimes the increase in demand due to the strong economy will be a trade off against the decrease in demand due to rising interest rates. Some people believe that the real estate market has a direct impact on the economy, thus indicating the future of the economy.
Typically people must take out a loan to purchase property. As such, the interest rates can make property more or less accessible. Higher interest rates raise payments while lower rates make property more affordable. Currently, interest rates are at an all-time low, which has encouraged many people to buy homes. These rates are subject to change at any time. While it is unlikely that they will spike in the near future, it’s also unlikely that they will remain this low indefinitely.
The real estate market is fairly balanced in 2015
The United States experienced a substantial dip in real estate prices around 2008, largely due to the poor economy. Over the past seven years, the real estate market has slowly returned to average prices. Experts predict a fairly balanced market in 2015, giving buyers more negotiating power than sellers. With more inventory and less competition from investors, many buyers are becoming more picky. Buyers know that if they don’t find the right home this month, something else will be available in the near future.
The Elite Real Estate Group is the top real estate team serving the Texas Panhandle region. We cater to buyers and sellers in Amarillo, Bushland, Southwest Amarillo, The Colonies, Tradewinds, Canyon, Hillside Terrace, The Greenways, City View, Puckett, and more. With ample experience in the region, our real estate team knows how to help clients buy and sell properties in a timely fashion. Whether you are a first time homeowner or a seasoned house flipper, we are here to help you in every way that we can. To learn more, fill out our contact us or give us a call at (806) 337-0883. View our listings today to see properties that are currently on the market!