New Year - But It's Still Real Estate!

2015 is now over 1/24 completed, and statistics show that over half of us have already broken our resolutions, and are now proceeding as usual. While real estate is one component of what goes on in the real world, every period has certain specifics and nuances that should be addressed proactively, if one is to achieve the best results. Here are some factors that impact real estate as we face 2015:

1. Oil Prices: The significant cut in pricing significantly reduces homeowners (especially in areas that have winter seasons) heating and energy costs. For many, this will mean at least a $500 savings (or more) during the cold - weather months  Another impact is that there is no longer a savings heating using gas heat, and that might impact potential buyers' decisions.

2. Mortgage Rates: As we begin the year, these rates are at or near historic lows. It is important to remember that for every $100,000 of mortgage, a change of 1% in the rate translates to approximately $65 per $100,000 of mortgage, per month. In areas such as the New York metro area, where the typical mortgage is for a far larger amount, consider the differential. In addition, when mortgage rates are lower, more people qualify because of the lower monthly payments.

3. Consumer Confidence: Most polls show that it is improving, and more people buy homes when consumers feel more secure and confident. However, these same polls continue to fluctuate, and thus must be reviewed regularly.

4. Supply & Demand: Is it a buyers or sellers market? What is the trend? Why?

5. Other Factors: These include: economic, political and perceptions.

New year, but the same rules apply. The better you understand external conditions, the more capable you'll be of adjusting, adapting and enjoying the real estate market