All of us want to avoid being in a bubble again where our homes are valued at more than they are worth. But how can we tell if the market is stable or if we are just heading for another disaster?
Some of the signs include paying attention to trends in the area. Are there For Sale signs everywhere in your neighborhood? How is the Job market and how many people in your community are unemployed? How quickly are new homes selling? Are established couples upgrading their home or even moving into new homes? Are there less distress sales (i.e. Short Sale or Foreclosures) in your neighborhood? And finally, are previously closed businesses reopening?
All of these are classic signs that you can monitor in your own community and stay aware of market trends. When comparing the real estate market and home prices, we have to look month to month and also year over year, to see a pattern of growth.
Another way to tell how good the market is doing is to pay attention to current interest rates and the more attractive they are, the better real estate will do. If the interest rates are low than it is very attractive for new buyers to contemplate purchasing a home. After all, that is the American dream! The Board of REALTORS’ tracks this with the Housing Affordability Index and these statistics are published for all to see.
Similarly, the US Census Bureau publishes residential home prices throughout the US and even state by state to indicate the current median market value. Their figures include many years so you can compare the emerging trends.
Finally, with all of that being said, we know how we feel when the housing market is increasing, and our careers are on an uphill swing. These little signs may help us all to be more diligent and stay prepared for the future. If you are comfortable in your current situation and would like to remodel your home, kitchen or bath you can call at 951-760-9968, or fill out our online form to learn more about our offers.