Investors routinely speculate on the rising or declining prices of real estate. It all depends upon the market trend. There are many factors of the market trend that accounts the rise and fall in the market prices of the property says Hirsh Mohindra.
The real estate market consists of more than just buildings and land. It also includes all of the ancillary markets such real estate financing, brokerage, construction, and leasing. Hirsh Mohindra says that this is basically a wider market that fluctuates due to many factors, so before investing in this fluctuating market one should understand all its attributes. Many of the driving factors that impact real estate prices are intertwined. Hence even minor derivations can have broad and lasting effects.
Recently, many experts anticipated the new tax law, which may result in a slowdown in the housing market. Also, recently, it has been seen that the constraints on mortgage-interest and property-tax rebates haven’t had an adverse effect. Instead, these, surging mortgage rates and home rates are doing more to put a damper on the market.
The rising market is also due to the urbanization in the entire economy which has secured people from small towns and villages discover a place in big cities. This has led to an increase in demand which appreciates the growth of the sector. A good amount of people both the middle class and upper class from small cities are used to living in places be it big or small that have a lawn, a veranda, so they are finding a place and buying new places which appraise the market.
In this market the Economic possibility is produced by the universal global trade crisis. Another factor which affects the market is the stock market volatilization and the government abandonment. All these factors are still not helping to push to push the market up. In this context, potential homebuyers are being unwilling to make a large investment in real estate especially in the housing sectors says, Hirsh Mohindra.
From years the government is holding on to a stable policy for this sector, but recently the sector witnessed an appreciation in home sales. The thing will soon settle and decide whether the recent appreciation is a temporary lull or a major pullback. So to conclude the value might rise but it all depends upon the market conditions if these are good the market remains stable and if they are not favorable then it’s for the worse.