Carlisle Mitchell - Market Conditions - Real estate pricing
Real estate pricing deals with the valuation of real estate and all the standard methods of determining the price of fixed assets apply.
The median home price is one of the most common measurements used to compare real estate prices in different markets, areas, and periods. It is said to be less biased than the mean (average) price since it is not as heavily influenced by small number of very highly priced homes.
Rents and prices are often expressed per square foot or square meter to act as a basis of comparison.
Home prices are limited by various factors, such as the incomes of potential buyers, the cost and ability to construct new property to increase supply, and demand for rental units. Since the majority of homes purchased are purchased with a mortgage, the ability to make payments, borrow money, and the cost of borrowing money are major influences of real estate pricing.
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