2006-10-30 06:48:31 · 6 answers · asked by muhammad s 1 in Business & Finance ➔ Renting & Real Estate
Understanding the dynamics of metropolitan housing prices is important for affordable housing advocates, urban planners, policymakers, real estate and development professionals, homeowners, and others with a direct stake in local housing markets. Current research on the factors influencing housing prices is particularly relevant given the growing concern over the lack of affordable housing in many communities nationwide.
A 2002 article in the Journal of Real Estate Research examined this issue, analyzing factors that influenced housing price changes in a sample of 130 metropolitan statistical areas (MSA) between 1984 and 1998. The results showed that housing price appreciation was strongly influenced by several factors: changes in population, income, construction costs, stock price appreciation, and after-tax interest rates.
2006-10-30 06:53:23 · answer #1 · answered by Dragon Empress 6 · 2⤊ 0⤋
In general economics it comes down to supply and demand. So to create high prices you most create a shortage, you do this by using several MLS to split up the market and give buys the impression that is all there is and they need to move fast. This will drive up prices big time then a bunch of investors and flippers will come thus creating more of a false shortage. now you have a great big bubble.
So if you want to know what the true value of homes are you can not since it is over blowen but next year after the big bang of a breaking bubble the value will be about 40-60% less than today.
check out this web site.
http://www.breakingbubble.com/index.htm
2006-10-30 14:19:14 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Market activity - what near by homes are selling for
Feature - hardwood floors, granite counter tops, appliances stay
Size - sq footage, lot size, 3 of bed/bath
Condition - if its a fixer, then the price drops, if it's ready to move in, then the price stays at market
Neighborhood - safe, prosperpous vs. high crime; convenience to freeways, work, grocery stores, etc
2006-10-30 06:58:34 · answer #3 · answered by LifesAMystery 3 · 0⤊ 0⤋
In general economics it comes down to supply and demand. Other economic factors are interest rates, job growth, population growth in area. Other factors are desirability of neighborhood, school systems, commuter friendly.
Physical factors are size of builing lot, square footage of home, # of bathrooms, basement (finished or not, crawl space, slab), location (busy road or not) and overall market appeal.
2006-10-30 07:15:15 · answer #4 · answered by tianaramal 4 · 0⤊ 0⤋
Ammenities, transport, crime levels, environment, demographics, quality of local schools, church/mosque/community centre near by.
For the individual house, the structure, the quality of the workmanship, the neighbours. One person I know didn't buy a house because the last owner had farted in it for twenty years.
2006-10-30 06:54:15 · answer #5 · answered by Josephine 1 · 0⤊ 0⤋
All to do with location.
Schools, colleges, amount of work, the population of the area, the crime rate. etc
2006-10-30 06:54:22 · answer #6 · answered by scragette2000 5 · 0⤊ 0⤋