| Real estate follows a pattern and key factors will | | | | eye on natural resources can be one indicator of |
| affect the rise and fall of the market. The result | | | | projected growth in the property market. When |
| of this pattern is that some areas are still hot | | | | large numbers of new employees move into one |
| property markets and others are not. Can you | | | | area, all at the same time, the demand for |
| use this information to your advantage to buy or | | | | housing often exceeds the supply therefore |
| sell a house for yourself? If you are considering | | | | houses are scarce and it is a sellers market. |
| buying or selling, then understanding some of the | | | | Job growth has long been an indicator for serious |
| facets of the real estate market will help you to | | | | realty investors. If you are wondering about the |
| evaluate your own unique situation. | | | | property market in your part of the country, |
| Real estate is not only linked to economic growth, | | | | then the local newspaper is a good place to start. |
| there are also other influences and some of these | | | | If it forecasts that many companies, or even one |
| are regional factors such as population growth, | | | | large company, is moving out of town, it would |
| job growth and rising incomes. This means that | | | | be wise to keep an eye on the other businesses. |
| some areas are still red hot markets and that the | | | | One tell tale sign is an excess of rental signs in |
| increase in others may be dwindling. For instance, | | | | property windows and more 'For Sale' signs |
| the nationally posted figures for increases in real | | | | around than usual. If you are in an area where the |
| estate this year are 3.2% (that is up to June | | | | market is stagnant and you can ride it out,then |
| 2007). | | | | this is advisable as the market trend is usually |
| But some areas are reporting much larger jumps | | | | always up. Sometimes the perceived 'drop' in |
| than that. For instance, Wenatchee, Washington | | | | prices is really just a drop in the profit margin that |
| reports a 24% increase and the Pacific | | | | was on paper. |
| Northwest, Colorado and Utah are showing | | | | Alternatively, if there are reports that new |
| upwards of 10% appreciation. | | | | companies are moving into the area, it may mean |
| In Grand Junction, Colorado, the city's work force | | | | that back up businesses will follow. Also check for |
| has expanded by over 25% since 2002 and | | | | reports that one of the established businesses in |
| property has increased by 65% in the last five | | | | your town is planning an expansion, either way, |
| years. The area houses a large gas field and the | | | | these changes will bode well for the housing |
| related industries have all expanded. Keeping an | | | | market. |