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  • Add You - Why Prices for Real Estate Rise and Fall

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    Foreclosures are just one factor for real estate prices, but they detail the effect even one change can have on the market. Others can incl

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    The beauty of most real estate assets is they tend to rise in value over time. That doesn’t mean they don’t rise and fall in the short term. The question, of course, is why?

    At first glance, the real estate market looks fairly complex given all the various factors that can go into it. At this time, the big scare is the foreclosure market. Many fear that lenders have written too many loans to people that cannot really afford them. If many of these people default on their loans, the real estate market could see falling prices as foreclosed homes start to saturate it. Many feel this is already occurring.

    Foreclosures are just one factor for real estate prices, but they detail the effect even one change can have on the market. Others can incl

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    n, of course, is why?

    At first glance, the real estate market looks fairly complex given all the various factors that can go into it. At this time, the big scare is the foreclosure market. Many fear that lenders have written too many loans to people that cannot really afford them. If many of these people default on their loans, the real estate market could see falling prices as foreclosed homes start to saturate it. Many feel this is already occurring.

    Foreclosures are just one factor for real estate prices, but they detail the effect even one change can have on the market. Others can incl

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    , the big scare is the foreclosure market. Many fear that lenders have written too many loans to people that cannot really afford them. If many of these people default on their loans, the real estate market could see falling prices as foreclosed homes start to saturate it. Many feel this is already occurring.

    Foreclosures are just one factor for real estate prices, but they detail the effect even one change can have on the market. Others can incl

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    people default on their loans, the real estate market could see falling prices as foreclosed homes start to saturate it. Many feel this is already occurring.

    Foreclosures are just one factor for real estate prices, but they detail the effect even one change can have on the market. Others can incl

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    rring.

    Foreclosures are just one factor for real estate prices, but they detail the effect even one change can have on the market. Others can include things such as the availability of money for buyers [you need it to spend it], the time of the year [how many people are going to drive around shopping for a home in the middle of December in Chicago?] to a variety of other issues. Even considering these initial issues, one might think you need to be an economist to get a handle on the market. You don’t.

    At its core, a real estate market is really about inventory. Yes, inventory like you see in a store. If there is too much inventory available, prices fall. If there is not enough, prices tend to go up. To picture this concept, let’s look at

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