From the KCM Blog: "Why is Pricing a Home So Difficult?"
Monday, May 10, 2010
We looked at the significance of a house as a home this past Friday. I hope everyone enjoyed the weekend and had the chance to personally feel the intrinsic value of a home. However, it would be unprofessional of us not to acknowledge that each house also has a market value, which is the price at which the property can currently sell. We are going to devote this week to look at how difficult it can be to set an accurate value in this rapidly evolving market.
There are many factors that must be considered to determine the value of local real estate. Here are just a few:
- Demand for a particular type of house
- Supply of a particular type of house
- Interest rates
- Employment rates
- Foreclosures in the area
- Consumer confidence
