The real estate industry has trends just like any other and these trends can change quickly. What was a seller’s market today can quickly turn into a buyer’s market tomorrow. How do you recognize market trends in real estate and make them work for you? Recognizing market trends means staying up to date with not just housing prices but the volume of inventory on the market along with interest rates and what is happening in the local economy. If you are looking to buy or sell a home then working with a realtor who understands the local real estate trends is your best bet. Let’s look at the various things that can affect the market.
You want to sell your house in the shortest time possible for the most amount of money. Time can make a huge difference in the housing market. The right time of year can mean a huge difference in the selling price. The springtime is one of the better times of year to list your home. There are more buyers looking to break into the market. If you need to sell in winter because of a job transfer then you may need a more aggressive pricing strategy.
How the local economy is performing will drastically affect the housing market. For instance if your town has a booming economy and people are moving there because of employment opportunities then housing prices rise. Declining economies affect the housing prices in the reverse. When buying or selling you need to pay attention to what is happening locally. The number of houses on the market will also affect pricing, more inventory is a good thing for buyers but not so much for sellers.
The biggest factor that will affect real estate market trends are interest rates. When interest rates climb so do mortgage rates and that in turn means higher monthly payments for the average consumer. That also makes it harder to qualify for a mortgage. When the interest rates drop that means there are more buyer’s that qualify for mortgages and it is easy to buy and sell a home.
Type of Housing
Sometimes parts of the overall market perform better than others. Condos will outsell single family homes or luxury markets are moving faster than mid-range housing.
If you are buying or selling in the near future then it is in your best interest to understand market trends and how to make them work for you.