investment

Investment Fundamentals in Real Estate

The following post on investment fundamentals in real estate is from the friendly experts at Astoria Oregon Real Estate. Are you are looking to move to our beautiful area? Are you looking to sell your property and upgrade? Kyle and Alex have the answers you need!

News outlets constantly report on jobs, housing prices, housing inventory and other factors that affect the real estate market. With every data point it seems like the market moves up and down. It’s as if the latest data point has solidified the recovery or the doom of the market. Smart investors should look at trends and remember: Real estate is an investment in a location.

Investment Fundamentals – Jobs and the Economy

Jobs and retail sales can be a good barometer of the national economy. If people are employed and spending money, it is generally a good bet that the economy is doing well. This is a positive sign for real estate, but here is where the local part comes in. Cities like Detroit and Cleveland know all too well that they are not represented by national statistics.

This is not to say that national statistics do not affect the way people think, act and feel locally. But, investors should know how their markets trend with the broad nation. Recoveries in cities like Los Angeles and New York will be leading indicators. Meanwhile, second tier cities like Chicago might be several quarters behind.

Furthermore, the speed of recoveries also depend on the fundamental (or lack thereof) reason for the initial inflation. Consider a city like Las Vegas. This city began to see economic gains because of increased tourism; however, as the local economy begin to pick up steam, construction quickly became the growth engine. With the construction enormous casinos and the real estate development boom, Las Vegas became a city of physical labors. Even as tourism began to dip, the city continued to prosper because of this false economy.

Finally, disaster struck when many casino projects were cancelled and the local residential real estate market crashed. With no more construction jobs, the emigration began in earnest, leaving the economy short of people and jobs. Even as tourism returns, the residential market in Las Vegas should expect a much slower recovery than the greater economy because of its unprecedented rise.

Investment Fundamentals In Local Real Estate

Investors can profit from understanding the disconnect between market realities and market perceptions. Becoming familiar with the real estate drivers of a local market can help an investor understand when it’s time to buy and when it’s time to sell. Even today, markets like Houston show strong fundamentals and did not suffer from the same drop as other major markets. Local investors would do well to invest today and wait for the market to validate their conviction.

Don’t be swayed by national real estate statistics. Real estate is 100% local. Use this knowledge to profit from local mis-pricing when the greater economy becomes too hot or too cold.

Astoria Oregon Real Estate is the premier location for properties and information in the Clatsop County, Oregon area. Lead realtors Kyle Uchitel and Aleksandr Vasser are ready and waiting to assist new buyers or sellers in getting the most out of their property purchase or sale. Let Astoria Oregon Real Estate guide you on your journey!