Anyone who studies real estate and understands its history, realizes that the real estate market and the underlying trends are constantly changing and/or evolving. We have witnessed neutral buyers, sellers, and markets, and today’s seller’s market can potentially change seemingly overnight! What is a real estate/property market? TREND? Why is it important and what does it mean for the corresponding components of the quote price, days on market, ask prices (at, above or below), etc.? With that in mind, this article will attempt to briefly consider, examine, review, and discuss, using the mnemonic approach, why this is important, what it means, and why buyers, sellers, and agents need to be ready, willing, and able to pay close attention to this.
1. time sensitive: When an owner decides to sell their home, they should carefully interview potential agents to determine and understand their philosophies and approaches, and whether this represents time-sensitive issues, in terms of initial listing price, flexibility, marketing, and promotion. strategies, etc. Given that times and circumstances change and/or evolve, it is important and fundamental to focus from the beginning and price it correctly in order to sell quickly, at the best price, in the shortest possible time. and, with a minimum of hassle and stress!
2. Regional; sensitive; realistic: Beware of the possibility that there are some less than ethical agents trying, buy the listing, by proposing an artificially high listing price! Given that, in the vast majority of cases, the best offers are given, in the first weeks, after a house, hits the market. this strategy will generally be detrimental to achieving the best possible offer. Pay less attention to national trends than to regional, local, and location-specific ones, so proceed wisely and based on a realistic assessment of how best to proceed.
3. Economic factors: Two economic factors are the most significant and relevant when it comes to the housing market: (1) Supply and Demand; and (2) Interest rates. Supply and demand often play a role, whether we have a seller’s or buyer’s market. Interest rates and their levels/trends often determine the applicable mortgage interest rates. When rates are lower, buyers become more capable of, buy, more house, for the money!
Four. Niche/shadow: Often, one niche of the real estate market outperforms the others. For example, there are times when luxury home prices underperform more abundant, in-demand/affordable mid-range homes.
5. deepen; discover: Look beyond the surface, and obviously! Rather, delve into economic trends and find out what they could mean for future home values.
Attention to the housing market TREND! The more one knows and understands, the wiser the decision is likely to be!