Key Market Indicators of Real Estate Price Peaks and Valleys in your Area
As a buyer, how do you know when a good time to buy is?
🤓 Nerd alert incoming!
Now you will never be able to time the market correctly, but there are 5 clues that can help indicate whether or not your real estate market has reached it’s valley in prices, and might be on their way back up:
💲 Median* Sale Price stabilizing or starting to increase
🏡 Demand (sales) stabilized or Increasing
👇🏻 Inventory stabilized or decreasing (via sales, cancellations, etc)
👨🏻🔧 Unemployment rate stabilized or decreasing
📉 Interest rates stabilized or decreasing
Brantford looks like it’s on the way, with Inventory and local Unemployment starting to drop and Median Sale Price seems to be headed in the right direction as the next factor in play (need more August data to confirm)
We are scheduled for another rate hike in September but it seems like it’s going to be smaller than originally planned (original forecast was 0.75%-1.00%), which signals the start of a slow down or even an eventual reversal of rate hikes. This will open the door for sales to start ramping back up, further eating into available inventory, which would be the final of 5 key indicators that prices are about to be on their way back up.
*Median price is different than average which can be strongly affected by an extreme sale price at either end of the scale. The price in the very middle of a data set is the Median Price, with exactly half of the houses priced for less and half priced for more.
