A market is the meeting of supply and demand. The real estate market is the market for over-the-counter real estate transactions in which owners who sell (supply) and buyers (demand) trade real estate for a valuable consideration.
The real estate market not only includes the supply and demand of properties, but also includes many other important areas for the sector. Find below the key points and concepts that are involved in this market:
The offer consists of real estate offered in the market, it can refer to land (The land), built land (land and buildings) or houses and their annexes (an apartment in a condominium, for example).
The dynamism of the real estate market is established by the volume of transactions related to new or old properties and building land.
The indicators shed light on the demand for housing are the following:
- The demographic growth of the population and households, as well as their age, are factors that determine the housing needs.
- The structure of the home: the decline in the average size of households by the aging population and changing family structures (coexistence) is a phenomenon that affects almost all territories: with a constant population generates additional housing needs.
- The income, since housing is the main item of household expenditure.
The value of the home
The buildable land market is a factor that allows us to understand the phenomena of urban development and spatial diffusion.
The value of the land is often the most important determinant of the change in the price of a construction project. For an equivalent building, costs vary little by region.
Thus, the price of land is the most territorial component of the costs of land markets and, by extension, of the new real estate markets.
1- Market tension
In terms of housing, the tension of a local real estate market is defined by the level of adaptation of a territory between the demand for housing and the supply of available housing.
An area is said to be “scarce” if the supply of available housing is not sufficient to satisfy demand (in terms of volume and price). On the contrary, an area relaxes if the housing supply is sufficient to cover the housing needs.
If the principle of matching supply and demand may seem easy to identify in order to characterize the tension in a market, the indicators that allow it to be measured do not exist as such.
Most of the analyses mix the variables (unemployment from different sources, price of new and / or old housing, price of building land, dynamism of new construction, demographic indicators, mobility or billing, demand for social housing, etc.).
In order to be able, for example, to compare territories with each other, these multifaceted indicators are often aggregated to form a composite indicator.
2- Periurbanization (or urban expansion)
The expansion of cities over the countryside, or periurbanization, is a phenomenon that operates throughout the territory, but that can present different degrees of intensity from one area to another, driven by a demographic component.
The intensity of peri-urbanization also depends on the dynamics of the real estate market, in particular the locations and urban forms of new construction.
3- Total cost of an acquisition
Analysis of the real estate market, especially those aimed at looking at home ownership, often focus on the cost of acquisition.
However, it is also interesting to analyse the additional costs that can be added to it. In particular, one can cite the costs of commuting households that are established at a certain distance from cities or the heating costs of households that purchase old houses.
Now that you have more information about the real estate market, which will allow you to function better in this sector, it is time to buy and rent more properties in park view cityin less time.
Benefits of advertising your property on a real estate portal.
The effects of the Internet can be easily appreciated in business and personal areas. The fast and fast connectivity of the web has allowed people to get closer than ever.
In addition, the Internet has helped the real estate market and different types of companies to rule around the world to connect with each other and be able to market.
Nowadays, most of the real estate transactions are executed through the Internet, and also the people interested in buying and selling properties provide all the details on the web.
The real estate portals are the main platforms used by dealers to market Tajaratproperties.
Currently you have the ability to advertise any property through real estate portals, which will make you find buyers or tenants quickly and safely.
A real estate portal is a platform or website that contains all the tools that real estate agents need in their daily work.In addition, online real estate portals offer great convenience for potential buyers and for the agents themselves.
As for potential home buyers or renters, a real estate portal significantly facilitates their search, as they can find various property options in a centralized space, which can be filtered to meet their exact criteria in terms of size, budget, and other. factors.
Regarding real estate agents, these portals facilitate the marketing of properties to a wide audience. In addition to saving money and time that you will have when advertising your properties in a real estate portal, there are other benefits that you will obtain when using these digital portals compared to other traditional means, here are some:
Greater reach via the internet Vs. Printed newspapers
By uploading an ad on a real estate portal, you will have the opportunity to reach more potential clients by offering a more specific overview of your properties thanks to an attractive description, photos or recent videos with which you expose the potential of the property.
Thus, having the possibility of reaching a much larger audience than you would through traditional media such as magazines or printed newspapers, since nowadays people look for everything they need online.
Increase in sales when using a CRM Vs. Publish manually in each medium
The more portals you upload your properties you will have more possibilities of sale because they will have a greater reach. By using a real estate CRM, you can publish your properties quickly and effectively on various portals, saving time.
Unlike making these posts one by one, since it would take you much longer to do it and they would not have the desired reach.
It is very safe that the people who are interested in your properties are your future clients, who will not contact you only to ask for information about the property, but most likely to reach an agreement.
Reliability of online information Vs. Printed information
Having an online profile on real estate portals where you present all the information related to you and your properties will favour the credibility of the real estate agent, because potential buyers looking for a house are more confident if the property has an online advertisement in a recognized portal, with data and photos that support the existence of the property.
In addition, finding this information online is much simpler than doing it through printed documents, which cannot be easily accessed.
What is a property?
By property is understood everything that is built with foundations on a ground and that, therefore, is immobile.
Legally, the realization of such good requires a building permit. Therefore, the property is defined as the inseparable set of a building and the land that supports it.
Economically speaking, it is a product made with two production factors: land and construction. A question for the developer is that of the optimal combination of building and land, particularly with regard to building density.
Land as such is also a property, but it has value only for the use it can have, especially when it enters as an intermediate good in the production process of another good, service, agricultural production, building, etc.
Characteristics of a Property
From above definition, a series of characteristics of the properties can be deduced:
The location characteristic results from the use of a property on land. It is not specific to the real estate sector: jobs or certain public or private services are also located.
This characteristic implies that the markets for these goods are located in a specific place and that it is the buyers of the properties who must move to them.
The localized character is taken into account by the economic analysis in the different conceptions of space. In particular, the demand for a property is theorized by the location of agents such as households in terms of their accommodation and companies in terms of their production premises.
One of the most relevant criteria for those looking to buy a property is its location, register here and compare the prices of your properties with other similar ones in the area, identifying the best offer and obtaining the best profit margin in each operation.
Durability is a physical characteristic of buildings that comes from the soil and the construction. The soil generally remains intact indefinitely (except for polluting activities).
The construction is amortized; in other words, it loses its value over time. However, depreciation is offset or even overcompensated by the investment.
The durability of the properties means that they can generate a service over time, a service that corresponds to the use of the property. This character distinguishes real estate from expendable products, which disappear when they are used for the first time.
The service generated by the properties has an economic value. This recurring value over time gives real estate the dimension of real assets.
The economic expression of the value of the service is the rent, or the value of the asset is the sale price of the property. Therefore, there are two ways to pay for the use of a property: pay it as it is consumed, that is, rent it, or “pay all the rents” at once by purchasing the property.
Basically, these two payment methods are economically equivalent: price is the discounted sum of future net income. If one state was more advantageous, the other would tend to disappear.
A property is first of all heterogeneous in terms of its use: residential use, office use, agricultural or industrial production activity or private or collective service (schools, hospitals, churches, etc.).
For the same use, they are also differentiated by their location and their physical characteristics (size, comfort, age, condition, etc.), or even by market characteristics. (free or occupied, for example). The heterogeneity of the goods prevents them from being perfectly substitutable.