I was just reminded about something really interesting and it’s a cool perspective on something we take for granted. We all assume that as the economy improves we can expect to see two key sectors rising – employment and housing prices.
The usual logic for this is that as people have more money to spend they buy more expensive houses. So we see the two things rising. The missing factor in this equation is that it’s very vague, meaning no one knows where or when and this kind of phenomena is very hard to quantify.
But here’s the interesting twist. Basically it says that as job centers and metro areas need to hire more people, demand rises for qualified workers in the area. The more people that need to work in an area, the more demand for housing and the higher the home prices rise.
It’s kind of a simple idea but it gives you one really awesome thing to look out for. You can expect a specific place for home prices to rise. Look for bigger employers or places where job growth it likely. Check local stats in your area and you’ll have a good signpost for where to invest.
If you have any other good tricks of the trade you want to share with everyone please leave a comment. We’re all learning and helping each other.