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A lot of things
affect market strength, but some more than
others. Is employment strong in your area? Are
there jobs available that pay well? Plentiful
jobs that pay well help to strengthen the real
estate market.
Is there a high inventory of newly built, but
unsold, housing in your area? Has this inventory
been increasing or decreasing? Sales tend to
slow and prices decrease when inventory is very
high. This often happens when prices have moved
above what average families in an area can
afford.
Where Home Inventories Are High
In Washington, D.C., Miami, Florida, and
Phoenix, Arizona inventories of new unsold
housing have increased greatly in the last
twelve months. Those markets tend to be better
for buyers than in the recent past.
Where Home Inventories Are Low
In Texas, Dallas and Houston have very low
housing inventory increases and a good
employment picture. Prices are increasing there.
Families are buying homes. Investors are
scouting out the area and buying, too. This has
created a situation that is very helpful to
sellers, which is somewhat ironic given that
Texas generally missed out on the housing boom
of the last six years.
What’s Going On In Your Market
How do you figure out what the market is like in
your area? Read the local news paper. Are there
“price reduced” or “buy now before the next
price increase” phrases in ads for homes being
sold? Are there stories about lay-offs or about
new employers coming to town? Call your local
builders’ association, realtors’ association,
Chamber of Commerce. Ask lots of questions about
the number of unsold houses today as compared
with the number a year ago. Ask the Chamber of
Commerce about employers coming to town or
leaving. Visit models in new communities and ask
lots of questions there, too.
You will soon have your own opinion about what
is going on in the part of the country in which
you want to buy or sell. Your strategy needs to
be adjusted to the strength of your position as
a buyer or seller. Understanding the market you
will be dealing in is a good place to start.
By:
Raynor
Article Directory: http://www.articledashboard.com
Raynor James is with
the
FSBO site - FSBOAmerica.org - homes for sale
by owner. |
