Charlottesville Real Estate Blog

This is the last installment describing the National Factors affecting foreclosures and the Real Estate Market.  We have now discussed interest rates, inflation, flow of investment funds, and the business cycle.  We are now down to the last National Factor affecting Real Estate.  This factor is the easiest to comprehend, yet the most emotional.  It is cataclysmic events. 

A cataclysmic event is something like Hurricane Katrina.  It is a naturally occurring event that devastates an area.  During cataclysmic events, building prices are likely to go up, resulting in higher real estate prices. 

Luckily, we don't have to deal with events like this every often, but it is something to be aware of as you are buying and selling homes in different areas.