San Diego real estate blog - Peter Toner

When discussing the current status of the Housing Market you often hear “national” averages, although it is good data to review it doesn’t entirely display the full picture. Housing Markets are regional. One region of the country could be suffering greatly while another has yet to see any distress. The best way to find out what the status is of your local region is by examining a few key indicators of which way the Housing Market may be headed. Each of which are somewhat inter-related as well. The following key indicators were discussed in an article in Money Magazine titled "Housing rebound: When to Spot One."

We’d like to share with you the indicators below.

Jobs: If there are more jobs available in your area, the demand for homes improves.  Plain and simple.

Housing Supply: If there is a large volume of houses available the market will not strengthen until the supply lessens. A stable market tends to have six month’s worth of inventory and homes stay on the market for approximately 90 days.

Year to Year Sales Comparison: Compare the current month with the previous year’s same month’s totals.  If this is data you are interested in learning more about, we’d be happy to pull the numbers for you and discuss the statistics.

Prices of Homes Stay Steady: The general consensus is that after 3 months of smaller price decreases the market will tend to shift for the better.

Renting vs. Owning: When renting is cheaper than owning in your neighborhood, you will not see as many sales especially if the market is distressed.

Following these indicators is not necessarily a magic crystal ball predictor, but they will allow you to observe the market in your area to get a better idea for which way the market may turn. Should you have any questions on this information, or would like further assistance with getting the statistical data for your community, please let us know we are happy to discuss the details with you!