Real estate, opportunities, housing, Great Depression, coronavirus, economy, shift, inflation, home, prices, Great Recession, PESTEL analysis, politics, political risks, government systems, economic state, economix factors, Gross domestic product, supply, demand, exchange rate, demography, classes, market, technology, technological advancements, innovation, weather, climate change, greenhouse, intellectual property, discrimination, safety, health, competition, challenge, luxury housing market, housing industry
The United States' housing market is experiencing a considerable shift. As the government tries to quell the impacts of inflation with relatively higher interest rates, every other aspect of the economy from foreclosure rates to housing market prices remains in flux. As such, housing prices within the United States have seen every end of the housing spectrum within just a decade. Precisely ten years ago, the United States home prices were at the lowest point during the Great Recession; since then, the average house value within the United States has risen upwards 114.5% and further continues to explore new highs. The fastest rate of appreciation has certainly taken place within the period of the coronavirus pandemic: over the two and half years that COVID-19 got officially declared as a global emergency, the real estate market prices increased by an average of 40% (Nwogugu, 2012). And over the past 12 months only, the housing market has witnessed an increase of 20%, hence, it is practical to assume that prices may only continue to rise.
[...] The factors, along with the resulting implications on the business climate, aggregate investment, and aggregate demand, in general, may have the potential to make the real estate market of the United States more profitable, or likely to experience losses. As such, the economic factors that may have a considerable influence on the real estate market of the United States, and in turn should get considered before possible investments include: The type of economic system currently in place within the industry - whether an oligopoly, a monopoly, or a system close to a perfect competitive economic system. [...]
[...] Hence, the technological factors that may influence the real estate market of the United States include: Recent breakthroughs and technological advancements made by competitors; if the housing market discovers advanced technology that gains popularity within the real estate market, it becomes important for the industry to monitor how quickly the innovation grows and the levels of popularity associated with the innovation (Pierdzioch et al., 2021). Monitoring technological innovation translates into the urgency required to properly respond to creativity, either by finding creative alternatives or matching the technological innovation. Precisely how fast and easily a technological innovation may get diffused to competitors within the real estate industry, leading to other firms aping the technological features and processes. How much technological innovation would transform or improve what the real estate market offers; if the transformation proves drastic then other firms may incur heavy losses. [...]
[...] And over the past 12 months only, the housing market has witnessed an increase of 20 percent; hence, it is practical to assume that prices may only continue to rise. Ideally, the same critical indicators that have shot up the prices within recent history still are in play, as demand and supply constraints push prices even higher; increasing rates might lower demands and weigh on mortgage applications. Presentation of PESTEL Analysis As an acronym for political, economic, social, technological, environmental, and legal factors, PESTEL analysis focuses on a thorough external analysis of business environments of different industries such as the United States real estate market for which data may be available. [...]
[...] Econometric Analysis of World Investment Funds Net Assets. Архив научных исследований, (22). Hall, J. V., & Krueger, A. B. (2018). An analysis of the labor market for Uber's driver-partners in the United States. Ilr Review, 705-732. [...]
[...] Some states, for instance, may have specific conditions that must first get fulfilled, while other government systems may have inefficient red tape that interferes with business (Nguyen, Xuan & Bui, 2020). Whether or not the intellectual property of the United States is protected. For instance, some states with no policies for intellectual property would mean potential investors find it difficult to invest. Possible trade barriers that a host state has to secure; nonetheless, trade barriers within states with trade partners would mean harm for enterprises by interference with potential exports. [...]
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