Housing is a major topic of discussion nowadays and for good reason: the national economy is highly dependent on the housing sector. Most people have been affected by the housing crisis through equity, foreclosure or even having to see their compatriots suffer. That’s why more and more people are paying close attention to real estate news and national housing trends. However, for those not familiar with housing trends and statistics, the data can be confusing or even misleading.
On the other hand, buying or selling a home is one of the most exciting things that most of us will ever do in our lifetime. Although most of us decide to sell or buy a home based on our lifestyle preferences, it would be wrong to think that we don’t spend a lot of our time pondering about the housing trends. That’s why it is important to look at the monthly national housing report and try to make sense of it. The US housing report stirs a flurry of real estate news items and articles that you can read to gain perspective about the US housing sector and the overall buyer/seller prospects in the market.
The August report has shown that the real estate sector is gradually returning to its normalcy. These statistics provide agents, investors and other industry players with a clear view of how the local, regional and national housing markets continues to perform and how it is likely to perform in the near future. This sort of information can influence the investing world from top to bottom. Data analyzed for the month of August shows that the housing market is beginning to tip in favor of buyers, unlike the last few months when it has been seriously tipped in favor of sellers. However, that does not mean that sellers are at a disadvantage; instead it means buyer prospects are also increasing.
This year, we have witnessed the growth of inventory in August. And although the overall demand for housing remains strong, the data on the median days is showing that the marketing is striking some sort of balance that bodes well for potential buyers who were unable to find the right property to purchase this spring or summer.
During the first three weeks of August, 2015, inventory listings rose by 3% compared to July. The average list price rose to $233, 000, which accounts for an 8% year-over-year increase per year and almost flat over July. The median number of days on the market rose to 75, showing the tilt in favor of potential buyers.
The metric has fallen 6% year-over-year, which shows that the market is still doing much better than last year, although the 6% month over month increase implies that inventory is currently moving slower than it was in the previous months.
As an agent or investor, you can use the findings on how the US housing market works to improve your online marketing experience. It is important for you to understand how your local market situation is changing before considering the national conditions, although national figures might show how the market might shape up in certain parts of the country.
Without a doubt, you must dig a little bit into the statistics to make sense of them and know exactly what you are considering. Two good guidelines for interpreting statistics are:
- Understand what the figures represent
- Make sure you are comparing side by side.
And as we all know instinctively, the most important thing is how the local market is shaping up. For example, you may want to know the value of your home. Here, don’t bother checking the national figures. Don’t even consider the average figures in your city. Look at similar homes in the same location as you and compare aspects such as age, size and so on. And only check recently closed sales. Prices might vary considerably from time to time, and asking for prices may not be as helpful as you may think. The same guidelines apply to overall sales activity. Your area could be experiencing an increase in sales activity because a large organization just opened a store along the street. However, that may not affect people a few streets away.
Clearly, properties are sold and bought by forks with their own individual needs in mind, but housing trends and local real estate news can help shed light on the prevailing local conditions. It is important to contact an agent to find out more about how the local housing market is shaping up before buying or selling a home.