Consumers these days are bombarded with information through the Internet. They can read reviews of any product they may be considering to buy. There are consumer reporting and review sites with the stated objective of advising consumers about what is a good deal and what is not. There are consumer product safety sites with loads of product safety information.
There are a great many people who would love to own a home still hesitating and staying on the sidelines. Some don't have the down payment, or they may have credit problems. However, credit is loosening up; down payment requirements are coming down as well. Many are more able to buy than they think.
We've all heard the real estate mantra, "It's all about location, location, location." It hangs around because it's true, at least within the confines of human behavior. But, it's not the only factor in home prices, though arguably the most important. Let's take a look at the three factors I believe have the greatest influence on home prices.
Absorption rate is the number of months it would take to sell the currently listed homes in the market. That sounds simple, and the math is for the most part. However, it's an important concept, and it's used by a great many real estate related businesses to attempt to predict home prices and sales activity going forward.