What is it that makes home prices go up or down? We all know about the supply and demand concept and most of the time that is the pinnacle factor in the driving of our pricing markets and models, but what if there were other factors that were just as important and had equal impact.
Incentives could play a major role in the pricing of homes. If there are a lot of incentives being offered to home owners than this creates more competition in the housing market, especially for home builders. For Durham homes pricing information please see www.teamjodi.com. Competition as we all know definitely drives pricing.
Recently in our economy we have seen a huge increase in unemployment rates. This creates and insecurity and that insecurity makes people not spend. When people aren’t spending, prices usually go down to try and draw them in to making purchases. We are in a struggling period of time right now in America with our economy taking hits over the last couple of years. The housing market is fighting to stay afloat and Realtors are doing what they can to sell houses.
Different markets are fairing differently with Florida leading the pack with markets that are not doing so well, whereas California is getting reports of a recovery with homes selling for more that the listing price. Please visit www.teamjodi.com for assistance with your real estate needs. We know that time will tell on most of the theories around the housing market, but for a portion of America we need solutions now. We can only get so many tax breaks that may actually be tax burdens in the future. I think for most we are all just hoping that the economy somehow corrects itself and we can have things somewhat back to normal.