By Joseph Palumbo III
With so much bad news in the real estate and financial arena, hearing something positive may be therapeutic. For the last two years, home prices have fallen to pre-2003 pricing levels. The good news is housing prices are showing signs of stabilizing and even increasing in value in some areas. So what are signs you can watch for to see if your home is going to increase in value?
First is the unemployment rate. Without a job, you cannot buy a house. The good news is the unemployment rate is getting better with each passing month; the bad news is that it’s not fast enough. But you as a consumer can review labor statistics to get the most recent unemployment stats and gauge how things are looking. The lower the unemployment rate, the faster you know the housing market is starting to rebound.
Supply and demand still come into play regarding the marketability and sale of your home. Because homes were overpriced, supply is high but demand low. The real estate market is beginning to correct and adjust itself. This will enable more homes to be sold and raise overall demand because people will once again be able to afford and realistically purchase a home.
If you see a lot of For Sale signs in your neighborhood or surrounding area, supply is still high and demand low. In most cases when more than 2 percent of houses in a neighborhood are selling at the same time, inventory is high.
So How’s Business regarding signs that your home is increasing in value? A more frequent question asked is, “When is the market going to hit bottom?” No one knows, but following the signs outlined can tell you where we stand regarding selling your home. Trulia.com is a huge asset in looking up overall housing statistics. If you are looking to sell or purchase a home, interview licensed realtors until you find one you feel confident will get you the best overall deal.
Contact Joe Palumbo at 516-297-4034 or jp@c21amhomes.com.
