Real Estate

Owning a home is still very much part of the American dream. However buying a home is an intricate process that does not simply entail searching for the best house and making a purchase: there are a lot of variables to consider. For one to make the best purchase timing is of the essence and it is in turn dictated by pressures that influence real estate value.

As such, it would be in the best interesjmkb2wed5r25wedt62y27u2t of an individual who intends to purchase a home to be aware of these pressures so as to make a cost effective. This said, the following overview of pressures that dominate real estate value might come in handy when making a decision to buy


The economy of a country also adversely affects the value of real estate throughout a country. When it comes to the economy, there are quite some indicative factors that can be used to determine whether the economy is good or bad. The GDP of a country is considered as the best indicator, but there are other factors such as employment rate and prices of goods that can also be used to determine the economic state of a country

As a norm, when the economy becomes sluggish, the purchasing power of the citizens is compromised and as a result real estate value drops. However when the economy is booming, real estate prices tend to be quite high

Supply and demand

The supply and demand curve has a major impact on real estate value. When supply exceeds demand, prices tend to fall: this is the best time to make a purchase. However, when the demand for real estate within a particular area is high and the supply low, real estate value rises


Demographics is a broad term that describes the composition of a population within an area, the range of income, race, gender and population growth. Demographics also significantly affects real estate pricing. For instance, property value for a residential area favored by members of a certain profession: let’s say, lawyers, tends to be quite high when compared to a residential area made up of individuals from different professions within the same area

Interest rates

Interest rates can also greatly affect real estate value. As a norm, the interest rates for mortgages usually fluctuates over time. When the interest rate goes high, property value also rises but when it drops, real estate value also drops

By considering the above overview on pressures that dominate real estate value, you will be better placed to make an informed decision when making a purchase