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Top 10 factors affecting Property Prices

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Top 10 factors affecting Property Prices

The housing market is just that – a market for housing. Just like other markets, the value of the products being sold is affected by external factors.

Take the value of oil, for example. This is affected by a number of key factors. One is the demand around the world. This is generally high but can be influenced by factors such as wars and localized troubles, difficulties with transport, the automobile and aviation industries’ needs. In fact, the value of oil is tied up in a complex global web of inter-reliant industries. Small changes in one area can have a big impact on oil.

Now, if we go back to the housing market, we can start to think about the external factors that determine value. Like anything, the property is only worth what people are willing to pay. But the amount that people will fork out for a home varies a great deal.

Here’s a closer look at ten of the most important factors that affect Property Prices.

The economy

The overall state of the economy perhaps has one of the biggest influences on the housing market. During times of trouble, when jobs are being lost, salaries frozen and uncertainty rules, people feel less willing and able to buy a new home. This in turn reduces demand, and when that falls so do prices. When the economy is stronger, there is less risk and people feel more comfortable making big, life-changing decisions.

 

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