Kevin Bratch — How Property Prices are Determined in Real Estate Market?

Kevin Bratch — How Property Prices are Determined in Real Estate Market?

Property prices are very phenomenal in real estate. Kevin Bratch says that in most cases, what makes the prices to fluctuate significantly can be attributed to demand and the subsequent supply of these properties in question. Therefore, there exist several factors that affect property prices in this industry. Key among these factors is Government policies.

These policies normally have an influence on real estate prices in that through legislation in form of tax incentives, deductions, or subsidies, which in the long run can end boosting this market by driving demand up. On the other flip side, punitive measures by the same government may end up strangling the same marketleading to low demand and prices.

Kevin Bratch goes on to analyze that the economic wellbeing of a country or region also plays a very crucial role in property prices.

Measures of economic well-being include GDP, data in the form of manufacturing, employment opportunities, and commodity prices, among others. A very conducive economic environment means that even the real estate segment in that particular region will perform better. However, a sluggish economy will translate into a sluggish real estate performance.

Interest rates can also affect real estate prices. This is because it has a say on the purchasing power of individual investors. And when the interest rates are very low, the cost of borrowing in terms of the mortgage is calculated on the lower side, hence, becoming sustainable. This is quite the opposite when interest rates are high.

One notable aspect as per Kevin Bratch’s insight is that in periods of low-interest rates, many people will be able to borrow, which then means that property prices will go up as the demand will also be higher.

Kevin Bratch puts it clearly that the demographic patterns of a given area can drive up property prices or down. These patterns can be in the form of age, race, gender, migration tendencies, population distribution, and income levels. Such statistical data more often than not can determine property prices in a given region.

Thank you For Watching