How the market cycle will affect Greenville in 2007
Real estate values are influenced by market cycles. The four main factors that influence value are the physical properties of an area, the economic outlook of an area, and the political and social atmosphere of the area.
The physical properties of the Greenville area including its location, climate, and topography, are very attractive to people who are looking to move to our area from out of town. For example, we have mountains and beautiful lakes within an hour’s drive, yet we’re not totally secluded and have good infrastructure. My prediction is that our resort style attraction will increase throughout the year.
The Greenville area economy is extremely robust at the moment, and growth prospects look pretty good. We are quickly establishing ourselves as an outpost for the automotive industry, and Greenville has long been famous for having a high ratio of engineers per capita. I’ll talk more about that in a future post.
From a political standpoint, the upstate is very attractive to businesses looking to migrate to this area. Our governments are quiet business friendly and there are many tax incentives to those businesses that can qualify. With all of the new businesses coming into the area, the economy is being influence in a positive way with high job growth and low unemployment.
Finally, on the social standpoint, Greenville is doing a good job of attracting all different types of demographics, including a young pen, highly educated workforce.
I will elaborate more throughout the year on all of these aspects, but wanted to go ahead and build a base and general reference guide to the four main components of what drive market cycles in the real estate industry.