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