Supply and demand imbalances are an example of external factors.
Supply and demand imbalances are an example of external factors. For example, if your property is located in an area experiencing a booming economy and increasing population, it will likely appreciate. Real estate is a scarce asset. More raw land can’t be created, which leads to an increase in demand as scarcity increases. Keep in mind scarcity depends on the market a property resides in, though, so demand tends to vary.