The Real Estate market sits in a fragile equilibrium that is understood by few, but should be understood by many. While you may think that understanding the market is something only your agent and other industry professionals can do, we are here to tell you that you, too, can predict what is going to happen.
You do not need professional schooling or years of experience to be able to predict where the Real Estate market is going: all you need to know are some basic terms and where to look. All of us at Team Ken Richter promise to keep you updated and help you in every way we can, too!
Your number one resource is your agent: they have loads of experience and can help explain to you why the market is headed in the direction that it is headed. This is why it is important to find an agent that specializes in the specific area you live in. Something to ask an agent is what the local inventory is like, measured by how long it will take to sell said inventory! The perfect balance is about four months. Any more and it is a buyers market (more houses than buyers = house prices fall), any less and it is a sellers market (less houses than buyers = house prices rise).
The next indicator you can turn to is the economy! What does the job market look like? How is business in the area? As a city, province, and country overall, is the economy stable? Economy significantly affects the housing market, as jobs are what bring people to cities and force them to leave cities. If the job market is thriving, so will the real estate market.
There are a number of secondary resources you can turn to online that will also give you a good indication of what to expect! The first one we recommend is our blog posts about what the market is going to look like in the upcoming season, but other websites include: your local appraiser, the real estate association, your realtor’s, and your city’s. All of these places provide information on housing—what it has looked like, what it is predicted to look like, warning signs, and exact numbers for referring to.
The best kind of homeowner is an educated one. As we mentioned before: the world of real estate is a fragile one, so make sure you do everything you can to understand it and make informed decisions.
Your Real Estate Professional,