|
You want to know whether the market is
strong if you are buying or selling real estate. Having such
information lets you know how flexible you need to be in
offers. Sales have slowed for large parts of the east and
west coasts for sellers. Good news for buyers there. On the
other hand, sales are picking up in parts of the interior of
our country. A cheerful note for sellers. Let’s look at what
is happening, why and what it means to you.
A lot of things affect market strength, but some more
than others. Is employment strong in your area? Are there
jobs available that pay well? Plentiful jobs that pay well
help to strengthen the real estate market.
Is there a high inventory of newly built, but unsold,
housing in your area? Has this inventory been increasing or
decreasing? Sales tend to slow and prices decrease when
inventory is very high. This often happens when prices have
moved above what average families in an area can afford.
Where Home Inventories Are High
In Washington, D.C., Miami, Florida, and Phoenix, Arizona
inventories of new unsold housing have increased greatly in
the last twelve months. Those markets tend to be better for
buyers than in the recent past.
Where Home Inventories Are Low
In Texas, Dallas and Houston have very low housing
inventory increases and a good employment picture. Prices
are increasing there. Families are buying homes. Investors
are scouting out the area and buying, too. This has created
a situation that is very helpful to sellers, which is
somewhat ironic given that Texas generally missed out on the
housing boom of the last six years.
What’s Going On In Your Market
How do you figure out what the market is like in your
area? Read the local news paper. Are there “price reduced”
or “buy now before the next price increase” phrases in ads
for homes being sold? Are there stories about lay-offs or
about new employers coming to town? Call your local
builders’ association, realtors’ association, Chamber of
Commerce. Ask lots of questions about the number of unsold
houses today as compared with the number a year ago. Ask the
Chamber of Commerce about employers coming to town or
leaving. Visit models in new communities and ask lots of
questions there, too.
You will soon have your own opinion about what is going
on in the part of the country in which you want to buy or
sell. Your strategy needs to be adjusted to the strength of
your position as a buyer or seller. Understanding the market
you will be dealing in is a good place to start.
Raynor James is with the
FSBO
site - FSBOAmerica.org - homes for sale by owner.
Article Source:
http://EzineArticles.com/?expert=Raynor_James |
