Posted by Peggy Farber on 7/3/2019

When you read the newspaper or listen to the news, it is likely that you come across economic indicators of your local real estate market even when you don’t know that they are. Most people do not pay attention to these indicators because they do not affect them directly. However, it is essential that you have a clear understanding of these indicators before investing in real estate or any other business. 

These economic indicators will help you understand the housing market better. The real gauges to keep an eye on are the level of sales, home prices, the number of ongoing construction, mortgage rates among others. To understand the future of the housing market, you need to understand the key economic indicators. 

Home construction

There is an increase in the rate of home constructions this year. With the fall of mortgage rates, experts expect that the prices will drop further this year. This price change is good news if you are looking to buy a home this year. 

Mortgage rates

After about ten years of unstable mortgage rates, the decision of the Federal Reserve to adjust its policy has given room for mortgage rates to drop. A better understanding of the nuances of mortgage rates will help you to know when to invest. You can also speak to your bank to ask what their projections are for mortgage rates.

Home sales volume 

There is a reduction in home sales when the price rises. That is, the sales volume tends to reduce whenever the prices of homes go up. Based on the report from Zillow, when the housing market is doing great, the economy of the country soars significantly. On the other hand, when the market goes down, the economy will decline with it. 

The inventory on the market

The number of homes available for in sale in spring of last year was fewer than now. Presently, there is better inventory that is preferable to what happened at the beginning of last year.

The economic indicators mentioned above will keep you informed on the recent trends in the housing market. However, you need to be aware of some other critical factors to be fully aware of what is happening in the real estate market in the country. These factors include buyers and sellers' preferences, student debt, employment rates, household-formation among others.

Understanding market indicators will help you choose the best time for you to invest in real estate. Consult a real estate agent for the latest reports in your area.




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Posted by Peggy Farber on 2/21/2018

People often talk about boosting the value of their home with various improvements. But it is seldom that you hear anyone talk about the unforeseen factors that devalue their home. Furthermore, there are some fluctuations in a home's market value or appraisal value that are out of the homeowner's hands. In this post, we'll break down some of the broader aspects of home value and determine which "improvements" will serve you best in the long run. We'll also point out the red flags that are sure to devalue a home on the market.

Location

Few things so greatly affect the value of your home as location. If you happened to buy a house in Brooklyn Heights a couple decades ago its value has probably gone up exponentially since then due to the high demand of living in a trendy part of New York. Aside from living in the hippest neighborhood, people choose their home based on other location factors. Schools, hospitals, shopping centers, vicinity to highways or public transportation may all play a big role for many people. Location factors that will negatively affect the value of your home are high or increasing crime rates, economic decline (boarded up stores aren't very appealing to home buyers), a high incidence of registered sex offenders nearby, and neighbors that have unkempt homes or hoard junk in their yards. Other location factors are harder to sniff out. With the exception city dumps or waste processing centers--which you won't have any trouble smelling--having undesirable places like power plants or noisy freeways in your neighborhood can also devalue your home.

Inside the home

Home improvements are a great way to increase the value of your home--as long as those improvements meet a few criteria. Any changes you make should be legal and up to code. Potential buyers do not want the liability of illegal home improvements, nor can they ensure that the job was safely done and doesn't put them and their family at risk. Your improvements should also be up to social standards and changing tastes. Yes, we all have our own preferences when it comes to paint colors and home decorations. But when trying to sell a home it's important that it doesn't look like a time capsule from the 70s, rife with wood panels and shag carpets. When it comes to home repairs many homeowners elect to put off big projects because they are daunting and time consuming. Instead they focus on surface level improvements that might not do much to improve the value of their home. If you have plumbing that needs to be replaced, deteriorating flooring, or faulty heating and ventilation, make sure you take care of those before putting your home on the market.

Ask the pros

If buying or selling a home is in your foreseeable future, one great way to get a jump on your research is to consult a real estate agent and a building contractor to learn more about your area's own unique market values. This will give you a head start on making changes to your home and will tip you off on what to look out for when home hunting.





Posted by Peggy Farber on 7/22/2015

According to Lawrence Yun, the National Association of Realtor's chief economist, the spring housing market is starting off strong. "If activity is sustained near present levels, existing-home sales will see their best performance in five years. The NAR expects sales to rise between 7% and 10% in 2012. What does that mean? Strong demand has melted away inventory in some housing markets with investors and first-time buyers vying for bargains, homes are being snatched up as soon as they hit the market. Prices may not be shooting up, but homes are once again selling at a rapid clip in many markets, draining the multiple-listing services and turning up the competitive pressure on buyers. Multiple offers and bidding wars are back. Lately if a buyer is not there the first day a home comes on the market, it's gone. When a quality property that is priced accurately comes on the market, it's not going to sit around. In some areas the competitive environment has already begun to nudge prices up slightly. Bargain prices and historically low interest rates are bringing buyers back. The belief among buyers is that the housing market has already turned the corner and that there won't be a better time to land an affordable home. National Association of Realtors President Moe Veissi, broker-owner of Veissi & Associates Inc. in Miami, says market conditions are improving as supply and demand have become more balanced.