Your Crystal Ball: Watching Five Local Real Estate Trends

As we are bombarded by news about the current real estate market, it’s difficult to imagine just how long it will take to see signs of a balanced market returning any time soon.

According to a recent Realtor® magazine article, however, we can look for telltale signs of a market pickup. Of course, when Realtors report that their phones are ringing more often, properties are experiencing fewer days-on-market and buyers are no longer hesitant to buy, it won’t be difficult to see this happen.

Here, however, are ways to monitor that a sales turnaround is in the works:

New Jobs vs. New Housing:

It is estimated that for every two jobs created, one new homeowner comes into being. If job creation increases while homebuilders are cutting back on production, it’s just a matter of time before the supply and demand move towards more balance.

Fewer Builder Giveaways:

As confidence in the market increases, fewer “play money” (concessions) will be given away by area homebuilders. All those free mortgage payments, included upgrades and interest rate buydowns will go the way of the Dodo bird – at least until another cycle dictates a market decline (heaven forfend).

Housing Supply:

Nationally, there was approximately a 10-month supply of housing by the end of 2007. As you see this number shrink, closer to a six-month figure, it’s a sign of a balancing market.

The Body Count:

If you study visitor trends to open houses and model homes --- information that can be furnished through your preferred Realtor, you can tell not only how much closer we’re getting to normalcy by the numbers, but also with how long each visitor lingers – illustrating buyers are getting more serious.

Rising Apartment Rentals:

Recession is not everywhere. As a matter, of fact, multi-family apartment community builders are flourishing in the current marketplace due to those fleeing from foreclosures, Generation Y members entering the housing market and immigrants needing housing as well. Once you begin to see progressively rising rents to the point of being regarded as artificially steep in nature, buyers will surely begin inquiring about buying vs. renting.

For more information regarding housing trends, go to Realtor.com’s consumer pages and spend some time seeing what is happening nationwide.