Sometimes it takes local home price estimates a few weeks or even a couple of months to catch up to the reality of the market, due to lags in public record data recording and other factors. This means that the market might be heating up or cooling down without getting reported in any news outlets or reflected by home sales data — which means you might not know that the heating or cooling factor is even happening!
The very best way to get a sense of your local market is to talk to a local real estate professional. We are in the trenches every day pricing and marking homes and negotiating deals, and we can give you more details than merely, “it’s a great time to be either a seller or a buyer!” However, if you’re not quite ready to involve someone else in your home search, there are some ways you can try to determine which way the market is heading on your own.
Keep tabs on the homes that are listed for sale in your neighborhood or ZIP code — this is really easy to do today; you just have to sign up for listing alerts via your preferred portal or even the MLS (multiple listing service). Pay attention to what’s happening to the homes listed for sale: Are they going under contract within a couple of days of listing, for over asking price? This is an indication that you’re in a seller’s market. Are they lingering on the market for a week or two and then selling for just about exactly asking price? That looks more like a balanced market. Or are homes sitting on the market for a few weeks before the seller reduces the price — possibly more than once — and finally sells the home for below the original asking price? That’s a good sign you’re in a buyer’s market.
The number of days on market and the list-to-sales-price ratios are good ways you can try to self-determine what kind of market you’re in. The National Association of Realtors and Case-Shiller also put out national numbers on a regular basis that track the housing market, but to see how those apply to your home on your street in your neighborhood, local data is going to serve you best.
If you are thinking of selling your home, give us a call. We would love to hear from you and help you achieve your real estate goals.