May 22, 2009

Ways to Know When the Real Estate Market is Up or Down

It pays to search for clues to gauge the market’s directions. Here are measures and issues to consider:

POPULATION Rising population creates demand.

NEW HOME STARTS More units create supply and that can keep a check on prices.

PRICES Call me today at 510-676-2731 for customized pricing data for your neighborhood.

DAYS ON MARKET The length of time it takes to sell a typical home is an important measure of what the local market is like. Some homes will sell fast; some homes will take longer to sell. There is a general average that gives us a sense of what the market activity is.

NARROW YOUR INQUIRY Use care when looking at general statistics; they may give you an incorrect picture. For instance, broad market trends may include both condos/townhouses and single family/detached homes. It may be that the local market is doing well generally but condo prices have stalled or vise versa.

GET REAL PRICING INFORMATION Recorded sale prices may not reflect actual transaction values. If a home sells for $750,000. but the seller credits a $15,000. concession to the buyer; the real price is $15,000. less than the reported sales price.

WATCH THOSE INTEREST RATES Lower interest rates are good for real estate, whether you are buying a home or selling a home. Higher interest rates constrict demand and reduce sales.

CHECK FOR JOBS If local employment is on the rise, this is a good thing for real estate. When jobs are declining, you will notice fewer home sales and moderated prices.

READ THE LOCAL PAPER Are there any new road openings? New factories or planned malls? Watch for school construction and building permits. All of these items suggest where local growth is headed.

If I may ever be of service to you, a colleague, friend or family member please call me at 510-676-2731 and I will help!

Posted by:Kay Korbel