A real estate market is a trading system consisting of buyers, sellers and intermediaries. The participants in the market buy and sell real estate (either land or buildings) for their own use or investment purposes. In most cases, they also develop the land they own to make it suitable for construction of buildings. They may also renovate and supply refurbished properties to the market. Governments play a vital role in real estate markets by ensuring that the industry is well-regulated and operates within a sustainable framework.
The real estate market is characterized by both a consumption good and an investment good, as it can be purchased for its rental income (investment), used as a place to live or work (consumption) or both. This dual function allows it to be valued differently from other goods such as cars, electronics or pizza. Real estate also has the added advantage of permanence, allowing it to be compared over long periods of time as an asset class, unlike other goods which are consumed and then destroyed.
Purchasing, selling and valuing real estate is often complex and risky, which is why many people rely on the services of real estate agents and brokers to operate in the market. They act as a trusted intermediary and guide their clients through the process of buying or selling a property, saving them time, money and potential legal issues. They also have access to exclusive listings and networks that can help them to match the right property with the right buyer or seller. Moreover, they can provide expert insights into the housing market and other relevant trends in the industry, such as median home prices and new construction.