How Can You Know When the Market Is About to Change?
Common sense reminds us that the real estate market runs in cycles, from periods of unexplainable, rapid appreciation to periods of consistent and predictable price escalation, to leveling periods to declining periods. It's really not a black-and-white, "now it's hot; now it's not" scenario.
There is never a need to panic, but for those savvy sellers who are strategically waiting for the best time to sell, you don't want to wait until the writing is on the wall. Times of consistent and predictable appreciation are perfect times to pull the trigger.
Here are the factors to watch.
1. When people are concerned about political policies and the outcome of a presidential election.
2. When unemployment increases or when trade and commerce show signs of pull back or loss.
3. When utility prices and oil and gas prices increase sharply.
4. When the stock market drops sharply and people experience financial loss as a result.
5. When terrorism becomes a reoccurring event, and when it appears that our country is unsafe or might be close to war.
6. When inventories of unsold homes are on the rise.
7. When days on the market increase.