Fluctuations in Real Estate
Like any investment, real estate has market fluctuations. To help investors research the best real estate investments that meet their needs, several real estate websites offer accurate market statistics and excellent housing market predictions.
1. Contact a local real estate agent or REALTOR(R) in the area by visiting any local MLS.com. REALTOR.COM(R) also allows interested parties to search their Find REALTORS(R) section by name or area served, which includes city, state or zip code. Their advanced search allows searches by agents, teams, companies, designations and certifications.
2. Consider requesting demographic data from the Better Business Bureau and the local Chamber of Commerce. This highlights up-and-coming businesses, growing areas and much more.
3. Visit www.census.gov for more business and demographic information. The website allows real estate hunters to search by occupation, zip code, industry or other valuable criteria. While this search is free, it may take time to learn to use the website to find the valuable data real estate hunters are looking for.
4. Sign up at Housing and Urban Development’s (HUD) website www.hud.gov for market data reports, newsletters and more. This information provides constructive insight into state and national forecasting reports and trends.
5. Visit the National Association of Home Builders to analyze the latest new home construction trends.
Significant real estate market projections that developers should keep an eye on when considering making large purchases are highlighted below. Generally, big banks do not like loaning to developers, which is why a direct lender or hard money lender is best for large development projects. However, developers have to do their own homework before investing in real estate.
• Learn what is taking place in local communities. If a large commercial development is ready to be built, it may be the opportune time to consider a planned residential development (PRD).
• Demographic trends are vital. Florida is rapidly growing because Baby Boomer’s are retiring there and retirement communities cannot keep up with the rate of growth.
• Vacation home rentals are in exceptional demand. Consider developing a community that focuses on low maintenance homes where people can vacation and unwind.
• When the dollar falls, this influences real estate because it attracts investors and foreign buyers. It also increases inflation for both commodities and assets. In turn, the cost of building supplies, transportation expenses and housing will increase due to inflation.