Overview of the National Factors that Affect Forclosures and Real Estate

The National Factors that Affect Foreclosures and Real Estate

There are five national factors. They are:

1. Interest Rates

2. Inflation

3. Flow of Investment Funds

4. The Business Cycle

5. Cataclysmic Events

You can access the information on any of the National Factors by clicking on them above.

Overview of the National Factors that Affect Forclosures and Real Estate

The National Factors that Affect Foreclosures and Real Estate

There are five national factors. They are:

1. Interest Rates

2. Inflation

3. Flow of Investment Funds

4. The Business Cycle

5. Cataclysmic Events

You can access the information on any of the National Factors by clicking on them above.

Foreclosure Lesson #5 - National Factors - Cataclysmic Events

This is the last installment describing the National Factors affecting foreclosures and the Real Estate Market. We have now discussed interest rates, inflation, flow of investment funds, and the business cycle. We are now down to the last National Factor affecting Real Estate. This factor is the easiest to comprehend, yet the most emotional. It is cataclysmic events.

A cataclysmic event is something like Hurricane Katrina. It is a naturally occurring event that devastates an area. During cataclysmic events, building prices are likely to go up, resulting in higher real estate prices.

Luckily, we don't have to deal with events like this every often, but it is something to be aware of as you are buying and selling homes in different areas.

Charlottesville Real Estate

Foreclosure Lesson #5 - National Factors - Cataclysmic Events

This is the last installment describing the National Factors affecting foreclosures and the Real Estate Market. We have now discussed interest rates, inflation, flow of investment funds, and the business cycle. We are now down to the last National Factor affecting Real Estate. This factor is the easiest to comprehend, yet the most emotional. It is cataclysmic events.

A cataclysmic event is something like Hurricane Katrina. It is a naturally occurring event that devastates an area. During cataclysmic events, building prices are likely to go up, resulting in higher real estate prices.

Luckily, we don't have to deal with events like this every often, but it is something to be aware of as you are buying and selling homes in different areas.

Charlottesville Real Estate

Foreclosure Lesson #4 - National Factors - Business Cycle

This is installment #4 of our Foreclosure Lessons. This far we have been over interest rates, inflation, and flow of investment funds. Now, we are going to learn about the Business Cycle of Real Estate and how it affects the Real Estate Market and Foreclosures.

The National Economy rises and falls in cycles - so does Real Estate. As our economy goes from recession to prosperity, investments are influenced. So let's define America's economic cycles.

When economy is strong, incomes are high, unemployment is low, and people tend to have more discretionary income to invest in Real Estate.

When economy is weak, incomes are lower, unemployment is higher, resulting in fewer Real Estate purchases, higher foreclosure rates, more renters and lower property values.

Researching the state of the economy is best served by reading things like The Wall Street Journal, Fortune Money, CNNMoney, and USA Today. Of course you can always Google or Digg information on our Economy.

Foreclosure Lesson #4 - National Factors - Business Cycle

This is installment #4 of our Foreclosure Lessons. This far we have been over interest rates, inflation, and flow of investment funds. Now, we are going to learn about the Business Cycle of Real Estate and how it affects the Real Estate Market and Foreclosures.

The National Economy rises and falls in cycles - so does Real Estate. As our economy goes from recession to prosperity, investments are influenced. So let's define America's economic cycles.

When economy is strong, incomes are high, unemployment is low, and people tend to have more discretionary income to invest in Real Estate.

When economy is weak, incomes are lower, unemployment is higher, resulting in fewer Real Estate purchases, higher foreclosure rates, more renters and lower property values.

Researching the state of the economy is best served by reading things like The Wall Street Journal, Fortune Money, CNNMoney, and USA Today. Of course you can always Google or Digg information on our Economy.

Foreclosure Lesson #3 - National Factors - Flow of Investment Funds

Now that we have looked at interest rates and inflation, its time to look at the Flow of Investment Funds and how they affect foreclosures and Real Estate in general.

Flow of Investment Funds refers to the number of people that are involved in Real Estate. When money flows into Real Estate, more people are buying homes and selling homes. In reverse, when money flows out of Real Estate, less people are buying and selling. The important thing to know where is the more people that are buying and selling, the more prices fluctuate. Just like the Supply and Demand curve.

Pay close attention to the Flow of Investment Funds. When people are shifting their money from Real Estate to something else, its the time to buy. The reason its the time to buy is because people want money quickly. Its important here to avoid following the crowd. This is where the money is made. Also realize that there are few things you can invest in that is safer and pays like Real Estate. The stock market crashes quickly, the Real Estate market takes months or even years to change.

You can figure out how the Flow of Investment Funds are going by talking to a Realtor, a member of the National Association of Realtors. The National Association of Realtors send out information to its members about the status of the National Market. You will also want to talk with a local realtor about the local market, but we will get into that a little later on.

Charlottesville Real Estate