A real estate market is the place where buyers and sellers meet to purchase or sell residential, commercial, and industrial properties. It’s influenced by a number of factors including economic conditions, demographic trends, and government policies. It also fluctuates in terms of price trends and has a cycle that includes expansion, plateau, and contraction phases. Real estate agents and brokers play a key role in the real estate market by facilitating transactions between buyers and sellers.
In addition to local and macroeconomic factors, social tastes and fads can influence supply and demand for property. For example, some homeowners choose to update their home to reflect modern design styles while others may opt for a more traditional look. Other factors that can impact real estate trends include the desire to own a home as an investment and its role as a symbol of status, and the need to accommodate growing families.
The COVID-19 pandemic is slowing price growth in many markets, with the exception of some Sunbelt cities where prices have continued to increase even as activity has slowed. Lower mortgage rates should improve affordability and could boost interest in purchasing properties. However, these are only temporary trends until the effects of the pandemic dissipate and positive cyclical forces regain momentum. Then, housing prices will likely rise. In the meantime, it’s important for investors and homeowners to stay informed about real estate market trends and to work with a knowledgeable and experienced real estate agent or broker.