Oct 30, 2013
So you’ve been hearing for months now that the Wake County real estate market is on an upswing.
But how exactly will you be able to tell as an individual home seller?
Today, I’m going to tell you 7 key things you’ll notice about the market when it’s improving.
Wake County Homes for Sale
When considering whether the market is actually improving, it’s important that you not only compare month-to-month activity but also year-over-year activity as well.
That’s because real estate markets are cyclical, and so studying month-to-month activity won’t give you the whole picture.
In addition to looking at year-over-year sales data, here are 7 other ways you’ll be able to tell that the market in Wake County is improving.
The job market is looking rosier. This should come as no surprise. After all, when people are gainfully employed, they feel more confident about purchasing a home because they feel more financially secure.
You’re seeing fewer and fewer for sale signs in the neighborhood. When everyone and their mom is listing their home, it’s a sign that supply is exceeding demand. So when inventory drops, it’s likely to increase sales prices.
Median Sales Prices Stabilize. This should also make sense. When median home sales prices level out, it is an indicator that the market is more stable and less volatile.
You notice fewer and fewer distressed sales on the market. Whether it’s a foreclosure or a short sale, these kinds of properties push down home prices everywhere. They’re also a red herring that market conditions are poor. When these start disappearing and traditional home sales return, it’s a great sign for the market.
Interest Rates Are Fantastic. When there is only a little bit of financing to go around, the cost of lending goes up. But when lending restrictions loosen up, interest rates start to fall. When interest rates are low, it means that buyers will have more purchasing power, which will further help stimulate the market.
More buyers are entering the market. When more buyers are looking for homes to purchase, it increases the demand for homes, which drives up home prices. This is certainly good for the housing market!
Sellers Are Upgrading to Bigger Homes. Typically sellers will stay put in their home or maybe even downsize during difficult economic times. But if they’re purchasing a move-up home, it’s a great sign the housing market is improving.
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Until next time,