The top 5 factors that affect the market prices of Real estate appraisals in Virginia
The State of Virginia has experienced massive growth in the real estate industry over the last decade especially from the uprising prices of these properties especially for the customers who need to buy them. Real estate agent, companies and brokers can help you to navigate the real estate minefield. But what are the factors that affect the market prices of Real estate appraisals in Virginia? Here are some of the factors that you should know:
1. The increase of middle class income earners
With an increase in the middle-class income earners who need decent housing units, the demand of real estate properties has increased leading to an upward trend in the market. Since the demand surpasses the supply, the prices of these properties have ever been increasing in the state of Virginia. For instance, a housing unit that costs $100,000 about ten years ago, now costs $250,000. With the trends, the same house unit might cost $500,000 in the next five years.
2. The rate of inflation in the real estate market
The rate of inflation in the real estate market has been increasing leading to an upward trend in the prices of these properties. You will definitely be certain that you would pay more if these trends continue if necessary measures are not legislated to control an upward increase in the prices of properties in the real estate market. Statistics often show that rate of inflation contribute up to 12 percent the value of real estate property in Virginia.
3. The Virginia’s State government rules and regulations on the real estate market
With the strict legislation of the Virginia’s State government on the rules and regulations for the real estate market, the prices of the properties has been increasing due to low supply despite the high demand by the people who need these decent housing units. If the government does not come up with legislation that would control the industry, it would be difficult for the buyers to afford the ever increasing prices of the real estate properties. For example, legislation has made the properties to increasing in their prices by 20 percent thus making it very expensive for the residents.
4. The slow growth of the economy of Virginia State
Economic growth often have an impact on the growth of real estate in any market. Since the state has been experiencing a slow growth in the economy, it has been very hard for the buyers to acquire these real estate properties from the market. Unless something drastic on the measures are implemented, it will be difficult for the residents of Virginia to afford these housing units being sold in the market.
5. Increase in prices of real estate raw materials in the international market
The prices of prices of real estate raw materials in the international market has been increasing thus making it difficult for the developers to make more units. Others have also passed the high cost of building a real estate property to the consumers making the prices of real estate properties expensive.
In conclusion, the above are the top 5 factors that affect the market prices of Real estate appraisals in Virginia for the residents.