Beyond the Bubble: How to Keep the Real Estate Market in by Michael C. Thomsett

By Michael C. Thomsett

The nice housing growth that has fueled top rate costs and dealers' goals could be slowing down, yet regardless of dire predictions, the industry isn't really more likely to implode spontaneously. With right making plans and a bit wisdom, householders, traders, and different stakeholders can keep away from catastrophe and in reality revenue on their houses - despite what the marketplace does.

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Additional info for Beyond the Bubble: How to Keep the Real Estate Market in Perspective -- and Profit No Matter What Happens

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That would not be possible without the order and consistency of plottage. The bubble created through the consolidation of land did not lead to a decline in value, but increased it. 8. ’’ So if a home is worth $225,000, and other homes in the same area are built and sold for an average of $250,000, the principle of progression tells you that the lower-priced home is likely to increase in value to approach or meet the average price. The adage, ‘‘buy the worst house on a good block’’ is one expression of the principle of progression.

Median income is $38,272, or 9 percent lower than the national median of $41,994. Because of these factors, prospects for growth in housing prices are slim in Albuquerque. There are no apparent driving forces, and the city is not a destination for large-scale tourism or retirement. For many, the mountain desert climate is not the most desirable compared to other places like the South and, notably, Florida. You will notice significant differences in economic trends and real estate prices between cities like Albuquerque and cities with larger satellite populations.

Looking only at prices is deceptive because it ignores the actual drivers of future real estate values—the kinds of activities that The Regional Character of Real Estate 43 cause bubbles. The specific factors that are going to determine future long-term real estate prices include the mix of population, climate, traffic, crime statistics, and economic drivers (such as tourism, or the mix of populations in the area). The mix of population is going to include several groups. For example, communities may be dominated by retirement-age people, commuters, or college students.

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Beyond the Bubble: How to Keep the Real Estate Market in by Michael C. Thomsett
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