Knowing what homes have sold for in your area means you will have a better understanding of your home’s worth. Real estate markets are local, varying from town to town or even within their own communities. When larger, more expensive homes sell near your home, it can make your property appreciate. Transversely, if there are many foreclosed and short sale homes nearby, it will hurt the property value. Having this knowledge will help you avoid surprises when having the home evaluated.
Keeping you eye on the market will allow you to see sales trends. The market will become more predictable and less mysterious. Knowing these trends will can help you better plan when to list your property and for how much. Bear in mind that while houses listed in winter months may sell for less and homes that go on the market in the Spring for more, it does not mean you cannot sell in the winter. Homeowners need to sell at all times of the year and home purchasers are looking year-round.
From a buyer’s prospective, knowing when to start your search can save you thousands of dollars when negating your deal. It is a buyer’s market when there are many homes sitting on the market for 30 days or more. Recognizing this can mean getting the home for less money or acquiring seller’s credits toward your downpayment.
Having knowledge of the national real estate market can also help you better grasp your local market’s current situation. We can experience years of buyer’s advantage markets followed by a surge of sellers having the advantage. Or we can have a seller’s market in the spring and summer trailed by a market that benefits the buyer in the autumn and winter of the same year. These trends can be more easily distinguished in the country’s overall real estate health. However, since your community could be experiencing the exact opposite of what is trending, it is best to just use this as a guideline.
Real estate follows the rules of supply and demand. Low housing inventory means buyers will have less to choose from. This in turn will drive housing prices up as there will be more competition for homes benefiting the homeowners. When there is too much supply, the prices will fall putting the ball in purchaser’s court.
When in doubt, ask a real estate professional such as myself. I am committed to knowing your market and having the answers you need to make the most informed decision concerning your situation. Put my experience to work for you.