Real estate prices never cease to amaze. If we observe the real estate market for a reasonable period of time, we realize that it is characterized by having two cycles, one of "rise" and the other of "fall". The former are the periods when prices spike in the market which is almost inevitable and which are followed by other periods when prices plummet. Actually, there are people who make a living from these cycles. They are people whose study of property markets has led them to a point where they can count on sufficient reliability when they are seeing a “drop” (when prices are ultra-low), which is at this point when they buy the property, and then during the "rise", he sells it, practically making his fortune. Prices in most areas are influenced by the strength of supply and demand. But for some reason, the prices of the market real estate seem to be dictated by what comes across as a set of very different forces.
In reality, faltering property prices are still under the control of the forces of supply and demand. The fall in prices occurs when there is an “excess supply” of real estate, compared to the effective demand in those periods of time, while the increases occur when the demand exceeds the supply. However, as it turns out, the dynamics of supply and demand in the real estate market, in turn, tend to be under the influence of other deeper factors; so if we look at the dynamics of supply and demand of even an affordable property in a prime location, they are in manifestations reality of other factors.
Here are 7 factors that eventually affect real estate in terms of many ways, such as productivity, availability, price, and quality.
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