If there’s anything the real estate market crash of 2007 taught us, it’s the fact that the real estate market would not rise continually. There will be times when the market is up and there will also be times when you can expect the housing economy to take a dip. So, how do you know when the housing market is improving? Here are some signs that you may want to keep an eye on.
There are fewer “For Sale” signs in the neighborhood.
You’ll know that the housing market is in bad shape if there are too many “For Sale” signs in a neighborhood. This only means that people are not buying homes, and that the excess inventory is negatively affecting sale prices. When those signs start disappearing, you’ll know that the housing market is on the rebound.
Closed businesses begin to reopen.
Since the housing market largely reflects the current economy, the reopening of previously closed businesses can be a good indication that the housing market is also about to recover.
The job market improves.
Needless to say, more people will be able to purchase homes when the unemployment rate drops and wages improve.
There is an increased demand for starter homes.
In a bad economy, people would rather rent than buy their first home. However, they will start looking for their starter home once the economy improves. Studies indicate that an attractively priced starter home in a good neighborhood will typically sell within 30 to 60 days in a strong economy.
Move-up homes start selling faster.
Home sellers in a bad economy prefer to rent than buy another home so the housing market stagnates. This does not happen in a more balanced market. In better times, home sellers will buy a move-up (step-up) home that suits their needs better.
Remember, no one sells a home like a Mom so contact me at 678-656-6627 if you have any questions about local market conditions, financing or anything that can help you with in your search for real estate. You can also visit my site at http://www.pamsantoro.bhhsgeorgia.com/ for more tips on selling or buying a home.
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