When you read the newspaper or listen to the news, it is likely that you come across economic indicators of your local real estate market even when you don’t know that they are. Most people do not pay attention to these indicators because they do not affect them directly. However, it is essential that you have a clear understanding of these indicators before investing in real estate or any other business.
These economic indicators will help you understand the housing market better. The real gauges to keep an eye on are the level of sales, home prices, the number of ongoing construction, mortgage rates among others. To understand the future of the housing market, you need to understand the key economic indicators.
Home construction
There is an increase in the rate of home constructions this year. With the fall of mortgage rates, experts expect that the prices will drop further this year. This price change is good news if you are looking to buy a home this year.
Mortgage rates
After about ten years of unstable mortgage rates, the decision of the Federal Reserve to adjust its policy has given room for mortgage rates to drop. A better understanding of the nuances of mortgage rates will help you to know when to invest. You can also speak to your bank to ask what their projections are for mortgage rates.
Home sales volume
There is a reduction in home sales when the price rises. That is, the sales volume tends to reduce whenever the prices of homes go up. Based on the report from Zillow, when the housing market is doing great, the economy of the country soars significantly. On the other hand, when the market goes down, the economy will decline with it.
The inventory on the market
The number of homes available for in sale in spring of last year was fewer than now. Presently, there is better inventory that is preferable to what happened at the beginning of last year.
The economic indicators mentioned above will keep you informed on the recent trends in the housing market. However, you need to be aware of some other critical factors to be fully aware of what is happening in the real estate market in the country. These factors include buyers and sellers' preferences, student debt, employment rates, household-formation among others.
Understanding market indicators will help you choose the best time for you to invest in real estate. Consult a real estate agent for the latest reports in your area.
About the Author
Jodie Franklin
I love helping people find their dream home or sell their house in order to achieve their next goals. I have been working hard for my clients for over 18 years throughout southeast Michigan. I have experienced every kind of transaction there is.
Helping my community and being involved is extremely important to me. I am Past President of the Michigan Ability Partners board, which helps Veterans and people with disabilities reach independent, self-supported, and satisfying lives. I have also been a member of the City of Milan Tax Review Board and Zoning Board, and involved in Milan Main Street. I have been a major sponsor of events for Michigan Ability Partners, Aid in Milan, Milan Main Street, and many more organizations that work to make our communities better.
I was 2018 President of the Ann Arbor Area Board of Realtors, Realtor of the year in 2016 for AAABOR and nominee for Michigan Realtor of the Year. I serve on many committees with the local board, state board and was a member of the Housing Opportunity Committee for the National Association of Realtors (2018-19). I am currently serving my second term as a Michigan Realtors Board of Directors.
I have liked in Milan for over 20 years and enjoy living here with my husband Cliff, son Evan, and dog Rosie.