When to Get Excited About the Housing Market
June 6, 2019
June 6, 2019
Real estate professionals get that consumers, by and large, ignore housing statistics and the market until they become involved in the purchase or sale of a home. It's only natural then that what impacts the market is a bit of a mystery to many. What determines a buyers' or sellers' market? What factors influence home prices?
Of course the answers to these questions and more may be multi-faceted, but it's important to pay attention to them if you hope to keep more of your money when it's time to buy or sell real estate.
Believe it or not, even in what seems like the gloomiest of real estate markets, there will be a glimmer of light for some.
Pay Attention to Interest Rates
It certainly is no secret that obtaining a lower interest rate for a mortgage typically allows for a lower payment. Naturally then, low interest rates make home-buying an attractive venture—and, even whispers of a rate hike can spur folks to get out into the market.
For instance, by the end of 2015, the U.S. saw 5.26 million home sales, which was the most robust housing market since 2006. Lawrence Yun, chief economist for the National Association of REALTORS® (NAR), attributed the robust market, in part, to the mere “prospect of higher mortgage rates in coming months.”
And, rise they did, throughout the following year. In fact, late in 2016, mortgage interest rates rose eight times in nine weeks, according to bankrate.com. Sounds rather gloomy until one recognizes that, post-hike, rates were still at historic lows.
The bottom line is that if you're in the market for a home and interest rates decrease or remain attractively low, it's time to get excited about the housing market.
The Economy
The current economy is a key factor affecting the real estate market. “Broadly speaking, when the economy is sluggish,
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