How to Determine the Housing Market Forecast

How to Determine the Housing Market Forecast

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Whether you are buying or selling property, knowing the Housing Market Forecast is essential.  If you are purchasing in a Buyer’s Market, then you should be prepared to look at many houses

in your price range, have your wants/needs of that property be met for the majority of the items on your “must-have list”, and be able to take your time.




On the other hand, a Seller’s Market is where the houses are not as plentiful as the people who are purchasing.  This is where bidding wars might take place, purchaser may make quick decisions and spend more money.  Sometimes there is a balance between the Buyer’s Market and Seller’s Market.  Naturally, this is called a Neutral Market.

The selection of houses is not too high nor too low, housing prices stay within the same range over a 6-month time frame, and there is 3-6 months of “supply” or houses available.






What determines these types of Markets?  This article goes over the calculations to determine the type of Market:

A brief summary:

“Months of supply is the number of houses currently for sale divided by the                                             average number of homes sold per month.”

Hypothetically, let’s do some calculations: 5,144 houses sold last year and 555 houses sold last month.  That means take 5,144/555=9.27 or about 9 months of supply.  This would indicate a Buyer’s Market.  But what if the number of houses sold last year was 555 but the number for sale right now was 5,114?  Divide this and get 0.11 or about 1-2 weeks supply!  This is clearly a Seller’s Market!  A Neutral Market would look something like: 4,310 houses sold last year divided by 716 houses sold last month.  The answer to this calculation is: 6.02 which is about 6 months of supply.  If you need assistance calculating the current housing trend in your area, any real estate agent could assist.

From reading the linked articles, putting all the definitions in place, and doing the calculations, hopefully your knowledge has expanded regarding the Housing Market Forecast. A Buyer’s Market affects the Housing Market Forecast by having about the same prices as one year ago, a lot of inventory, or fewer purchases are being made.  On the contrary, in the Seller’s Market, people want to purchase the houses and probably must be ready at a moment’s notice since the houses generally won’t be available for very long.  During this phase, a homeowner will most likely see multiple offers- even significantly above listing price.

Real Estate Investors can find a way to thrive in almost any Housing Market Forecast.  Why?  An Investor is seeking out the distressed properties in physical, financial, or geographical distress.  “Investment in property generates economic freedoms and access to good jobs and homes, reducing the strain on federal social welfare programs.” (An excerpt quoted from a Fortune Builders blog:  The Investor strives to boost the Housing Market-as a whole- to create more vibrant neighborhoods and boost optimism for future residents.  When the rehabilitated property is relisted to a retail buyer, the type of Market does play in affect how fast the property will sell.  BUT when a property is newly renovated and brought back to life in like-new condition, an Investor usually finds themselves surrounded by many buyers who want to purchase.  Also, when jobs are created because of that renovation, that is a boost to the local economy which can help boost the demand for housing which in return becomes a need for more houses to be refurbished.  Thus, an Investor can find a way to thrive in almost any Housing Market Forecast.

If you have a property to sell or have questions about the latest Housing Market Forecast, contact Reel Property Solutions, LLC.  Our team can assist with your questions about Investing or the Housing Market Forecast or network with a real estate agent to assist with home buying or selling. or 507-722-1511

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