Value of real estae increases here

We can determine the value of real estate by the interaction of buyers and sellers in the marketplace. The real estate market goes up and down in cycles for reasons which can only be understood after they occur. The economic principle of supply and demand prevails. In a buyer’s market, supply exceeds demand, driving prices down. In a seller’s market, demand exceeds supply, driving prices up.Most urban real estate markets are driven by jobs. However, the Mendocino Coast real estate market is driven mostly by retirement, recreation and telecommuting; and only indirectly by jobs created in and outside the local economy. Many local residents are wholly or partially independent of the local economy because of retirement or investment income, or out-of-town employers and clients. Many homes are purchased for part time, vacation or retirement use.In this type of market, buyers and sellers don’t respond to the same economic forces which act in urban areas. Sellers can set high listing prices and wait out the market and buyers can make low offers and defer purchases.In job-driven real estate markets, buyers compare properties within an area close to their place of work. On the Mendocino Coast, potential buyers have more choices and may be comparing properties from local real estate markets all over the country.Most real estate markets are uneven. Properties in different price ranges can have different supply and demand characteristics. There can be a strong demand for homes in one range of value at the same time there is weak demand in another price range.