Some of the major issues affecting the housing market are similar around the country. However, real estate is "local." To be most effective, consumers should be working with real estate professionals that are following the local trends.
Among the macro-economic issues for most housing markets are the "bigger picture" items such as the global economic turmoil and the directional swings of the stock market. These factors affect consumer thinking and give indications of the overall economy.
People that are looking to buy, sell, lease, rent or invest in real estate will give great consideration to the following:
1) local labor market
2) demand for property in the area
3) the current inventory of real estate
4) amount of distressed property in the target zone
5) whether or not sellers are realistic
The desirability of the neighborhood and ability of the consumer to afford the home will help determine demand for the subject property. Government statistics can give us some idea of the labor side and information such as days property has been on the market can help determine demand for real estate in a given region.
Inventory level trends can help in figuring out the direction of the overall local market. Rising inventory could mean it's more of a "buyer's market" and low levels of inventory might mean it's a "seller's market" in that area.
The potential influx of distressed properties should mean more potential inventory in the future. Prices in these areas might show deterioration for reasons beyond increasing number of properties for sale.
Homeowners that are "under water" on their mortgage may not list their homes at "realistic" prices in hopes of not "losing money." Some homeowners just can't afford the extra money they would need to fund any potential short fall and/or transactional costs. Other sellers are "unrealistic" in their thinking, whether postive or negative and could affect inventory levels. If sellers believe the market will rebound and "price it into the list price" then it could affect the sales figures in a particular market.
Working with a real estate professional can help in understanding important factors in a local real estate market. An informed consumer can make the best determination for their individual needs.
Please feel free to contact me in regards to real estate in the South Florida market.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
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