Every day without fail I get the question of how the Real Estate Market is doing. The questions come from friends and people you meet while doing business at coffee shops, meetings and social events.
For the most part the average person reads in the paper and takes some statistics from the local websites that tell a story of improvement. How do you know when the market is in Recovery? First of all it is not going to be anything that you can point to and say, “here was the recovery”! Talking to my fellow agents and Realtors, many say that they are having the largest inventory of Homes on Market in years. What does this mean when you compare it to number of homes sold or other factors?
Recovery to me is when all things being equal, the prices of homes have stabilized, the number of homes on market has been reduced and builders are once again building. The other part of the housing recovery is the fact that most of the inventory is still working from short sales and foreclosures. These listings need buyers and sill brings market values down. One last fact, people have to have jobs and they need to be able to buy things. When the jobless situation changes and more than that, when the hiring once again begins, then we will have a true housing recovery. We will know housing recovery when all economic factors resume a state of consistency.
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