Understanding life

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Each housing market is regional and varies greatly from the other. Still, there are indicators home owners can rely on to see whether their home values are about to rise. Here are four.


1.The Unemployment Rate

It's quite simple: Without a job, you can't buy a home.


And as the unemployment rate rises, fewer individuals are capable of purchasing a home. That decreases the demand for homes, which drives prices down.


Also, see if local businesses are hiring and if large corporations are moving into the area. More jobs leads to more employees who end up increasing demand for real estate in the area.


2.Rising incomes

House hunters who want to dig a little deeper can look at the average or median change in income among households in a particular neighborhood.


At a minimum, confirm that incomes are being adjusted for inflation (or ideally rising). Homeowners who have stagnant or decreasing salaries may not have much cash left over after they pay their mortgage; as a result, they might not maintain their homes or stay on top of repairs, which could lower a home's value and even its neighboring homes' values.


3.Declining inventory

In most areas where "For Sale" signs are common, home prices are far from recovery.


In general, when more than 2% of homes in a neighborhood are selling at the same time, inventory is high. As the number of homes for sale decrease, sellers have more leverage and a better shot at getting an offer close to their asking price.


4.Shrinking list-to-sales price ratios

Look at list-to-sales price ratios, which is the difference between the listing price of a home and the price at which it sold. If the price difference is shrinking for an area that suggests the real estate market is improving.

Thank you for your attention!