The ability to get the right price for a real estate transaction depends on a variety of factors, but market conditions are particularly important. If you’re considering buying or selling a home, it’s helpful to know the status of sales in your area and whether they are likely to improve. The agents at Gilbert Realty in Mountain Home, AR, share indicators to keep an eye out for when assessing whether it’s time to make a real estate deal.
4 Signs the Real Estate Market Is on the Rise
Healthy Job Market
When unemployment rates decrease and wages increase, people are in better position to buy homes. As they become more financially stable and gain purchasing power, it will boost property values and sales.
Disappearing “For Sale” Signs
When a market is at a low point, you might drive through neighborhoods and see “for sale” signs everywhere. Once they start to disappear, it signals house hunters are making purchases. It’s especially important to watch for a decline in the number of short sale and foreclosure homes.
Rising Median Sale Prices
When you evaluate the real estate market, you must consider prices. A pattern of dropping prices is evidence of an unstable market, while steadily rising prices show improvement. When the median price — the midway point of all units sold at market value — in your area goes up, it’s a sign of a healthy market.
Lower Interest Rates
When the real estate market is suffering, mortgage lenders typically raise interest rates to protect themselves financially. As buyers start to offer larger down payments and homeowners pay off their mortgages, interest rates will fall again.
The more informed you are about the health of the real estate market, the better equipped you will be to decide when to buy or sell a home. If you need assistance with a property transaction, call Gilbert Realty at (870) 425-6282. Visit them online to browse their listings of houses for sale. Like them on Facebook for updates and insight from their real estate agents.