Stock Market Performance

As the stock market continues to flunctuate, it increases the number of people looking to invest elsewhere. Also, as people become more educated about real estate as an investment, they are more likely to look away from the stock market for the increased security and greater potential returns in real estate. More people have been made millionaires by investing in real estate than in any other business.
As these national trends continue to provide solid growth in real estate, people will continue investing and continue buying with confidence in their own homes, vacation homes, retirement homes, and investment properties. The overall favorable national trends contribute to greater potential growth. Remember, however, that national trends do not cause every real estate market to grow. The real estate investor looks for emerging markets to capture the greatest appreciation and highest profits. The national trends help influence the overall market. Where the Baby Boomers, Echo Boomers, and Immigrants are moving will cause areas to experience the sharpest demand and highest growth potential. These are the emerging markets.
Knowing these general trends puts you in the right direction, but where do you look more specifically? For example, you know that Baby Boomers are moving to warmer climates, but that is still pretty general. It is important to know what factors to look for in markets to see what potential they might have. Several things can influence local markets.

Local Market Influences

• Location within a market

• Quality of schools

• Amenities

• Condominiums versus single family homes

• Strength of vacation home market

• Businesses in a market

• Businesses moving to a market

• Population growth





Excerpt taken from Making Hard Cash in a Soft Real Estate Market, Chapter 5, Pages 47-48.

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