Many times people ask why the market is changing. It can be for a plethora of reasons: economy, interest rates, weather, or even who the next president is. But what if there were other factors that also contributed that haven’t been taken into account? Here are three factors that are affecting home values that people may not even know.
- Traffic related GPS: Applications such as Waze and others that track traffic can play a factor in home values. The apps are rerouting drivers to take off streets that would normally not be taken, creating traffic, noise, and more through what was once a quiet neighborhood. This can impact home values in a negative way as many Buyers prefer to live on a quiet street.
- Pocket Listings: With homes selling off market, it contributes to low known inventory. This can drive prices up as buyers have less options unless their Realtor® is a pro at finding the off market opportunities.
- Vacation Rentals: Websites such as AirBnB.com and HomeAway.com have been becoming extremely popular for both visitors and homeowners. Homeowners have a way to supplement their income by renting out their empty rooms, guest houses, or units while visitors have a less expensive option with a more welcoming feel than what some of the local hotels have to offer. How does this affect real estate? For buyers they may take into account how much they can make off their home and may offer a price accordingly. Conversely, in a condo complex where there may be primarily home owners or steady tenants, now there are different people coming through the complex every day, providing questions regarding security.
This is what makes real estate interesting. The world and real estate go hand in hand and different events, people, and places all affect what can happen to the roof over your head. And of course, as times change, so will different trends that will shift local real estate values.
No responses yet