A real estate market consists of all properties available for sale in a given area. This includes single-family homes, apartment buildings, and other multifamily structures, as well as land that is suitable for building (Cambridge Business English Dictionary, 2021; Wikipedia, 2021). Real estate markets can be influenced by various factors, including economic conditions, demographic trends, government regulations, technological advancements, and market cycles that consist of expansion, plateau, and contraction phases. Moreover, real estate is unique in that it is both a consumption good and an investment good, making it susceptible to both consumer and investor behavior.
As a result, real estate prices are impacted by both local and global events. For example, a spike in income in a particular region can cause demand for property to increase, which will then lead to a rise in real estate prices. Conversely, a drop in income can lead to decreased demand and a decline in real estate prices.
Similarly, the popularity of a certain type of architecture or design can influence demand for properties. This can be a result of current social tastes or a response to trends in technology, such as 3D printing and modular construction that can reduce the cost of housing while also increasing efficiency.
Additionally, the real estate industry is heavily regulated by government bodies that are responsible for implementing policies and laws to ensure the fairness of the market and the safety of consumers and investors. This can include zoning laws, construction codes, and taxation policies that dictate how and where properties can be built. Furthermore, real estate agents and brokers play an important role in the industry by acting as intermediaries to facilitate transactions and provide advice to clients.
