Real Estate Industry
Real estate pertains to producing, selling and buying real estate. The economic growth of US is affected by how the economy of real estate industry improves.
Buildings that are recently constructed contribute to the GDP of the country. Building construction include residential, commercial or industrial. In the previous year, 2017, this industry contributed 7% the economy of US. That is $1.03 trillion equivalent.
New home building is a crucial type of Real Estate Industry. It includes construction of single-family homes, townhouses and condos. The National Association of Home Builders gives monthly records on house sales and average rates. The leading economic indicator in the data provided is the sales of new homes. It indicates how the housing market will do in nine months. That’s how long it takes to construct new homes. Other records supplied by NAHB show the numbers of new home starts. These are figures that tell the number of projects of homes built.
Real estate agents aid homeowners, businesses and investors purchase and sell all four kinds of properties. This real estate industry is divided into specialists who has its own field of expertise.
The realtor or the agent of the sellers may search for new buyer via Multiple Listing Service or thru business connections. The basis for pricing the property is the word “comps”. It has the comparative listings of properties just lately sold. These agents make your property presentable to the prospective buyers. They will ensure that you will obtain the highest price of your property in any negotiations.
The agent of the home buyer has the similar function as the buyer himself. The two of them understand the market. Because of that knowledge, they can both refer the very best property that matches your criteria. “Doing comps” is also a special skill they have. It enables them to guide you to areas that are affordable. The agent can assist you in the negotiation and help explain why a seller should accept a lower price. They help with the legalities of the procedure, including title search, assessment and funding.
Learn to Understand what the Statistics Tell About the Real Estate Industry
Statistics regarding new house construction are important leading financial indicators. Meaning, figures shown can give you an idea of the future of the housing sector.
The health of this real estate industry may be seen upfront by each of the known indicators. For example, say house starts are steady, but housing starts decline. Home sales will suffer in effect. A year to wait for buyers is too long. It also could mean that there’s a lack of wood, concrete, or construction staff. Those shortages could increase costs, and sales prices. Thus, a decrease in demand in the housing business.
The decline of mortgages could lead the homebuilders to have an inventory of their unsold homes. It also means demand is high, but homeowners can’t get mortgages. Home starts increasing could be an indicator that housing is getting back its strength. However, this may not a good sign. Declining house closings mean the housing market is weak.
Check out Bank Owned Foreclosed Properties | Check out Real Estate
