Anyone, who studies, real estate, and understands its history, realizes, the housing market, and the underlying, trends, constantly changes, and/ or, evolves. We have witnessed, buyers, sellers, and neutral markets, and, today’s sellers market, may, potentially, change, seemingly, overnight! What is a housing/ real estate market TREND? Why does that matter, and what does it mean, for the corresponding components of listing pricing, days – on – market, selling prices (at, over, or under), etc? With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, using the mnemonic approach, why this is important, what it means, and why, buyers, sellers, and agents, must be ready, willing, and able, to pay keen attention, to this.
1. Time – sensitive: When a homeowner decides to sell his home, he must carefully interview potential agents, to determine, and understand their philosophies, and approaches, and whether, it accounts for time – sensitive issues, in terms of initial listing price, flexibility, marketing and promotional strategies, etc. Since times, and circumstances, change, and/ or, evolve, it’s important and essential, to focus, from the start, and pricing it correctly, in order to sell, quickly, at the best price, in the shortest period of time, and, with a minimum of hassle, and stress!
2. Regional; responsive; realistic: Beware, of the possibility, there might be some, less – than – ethical, agents, who try to, buy – the – listing, by proposing an artificially, high, listing price! Since, in the vast number of cases, the best offers, are given, in the first few weeks, after a house, hits – the – market. this strategy, will generally, be harmful, to achieving, the best possible offer! Pay less attention to national trends, than regional, local, and specific location, ones, so you proceed, wisely, and based on a realistic appraisal, of the best way to proceed.
3. Economic factors: Two economic factors, are the most significant, and relevant, when it comes to the housing market: (1) Supply and Demand; and (2) Interest Rates. Supply and demand, often, influences, whether, we have a Sellers, or Buyers Market. Interest rates, and their levels/ trends, often, determine the corresponding mortgage interest rates. When rates are lower, buyers become more capable, of, buying, more house, for the buck!
4. Niche/ nuance: Often, one niche of the housing market, out – performs others! For example, there are times, when luxury house, prices, under – performs, compares, to the more plentiful, more demanded/ affordable middle – of – the – range, houses!
5. Delve deeply; discover: Look beyond the surface, and obvious! Rather, delve deeply, into, the economic trends, and discover, what it might mean, for the value, into the future, of particular houses.
Pay attention to the housing market TREND! The more, one knows, and understands, the wiser, the decision, will probably be!