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