Real estate represents a significant portion of most people's wealth, and this is especially true for many homeowners in the United States. According to the most recent Survey of Consumer Finances by the Federal Reserve, 65.2% of American families owns their own primary residence. The size and scale of the real estate market make it an attractive and lucrative sector for many investors. So what are the main factors that affect the real estate market and the variety of investments available. Interest rates have a major impact on the real estate market... That is because the lower interest rates go, the lower the cost to obtain a mortgage to buy a home will be, which creates a higher demand for real estate, which again pushes prices up. Demographics are the data that describes the composition of a population, such as age, race, gender, income, migration patterns and population growth. These statistics are an often overlooked but significant factor that affects how real estate is priced and what types of properties are in demand. Major shifts in the demographics of a nation can have a large impact on real estate trends for several decades. To find out more factors that can affect the real estate market please read the rest of the article by clicking the button below.