Where is the market headed? To understand the direction the housing market is headed you have to understand the 8 market indicators and what they mean.
These indicators tend to fall like dominoes in a deteriorating market and recover in the same sequence in an improving market.
The first 6 indicators have already shown us that the real estate market for sellers has really deteriorated since July. So far, the last 2 indicators average price per sq ft for pending listings and monthly average price per sq ft for closed sales, are both still standing firm. If they stay standing we can confirm it is more of a weak spell. If they fall then we have something more serious, possibly a period of price declines. So far the top 6 indicators are not showing improvement but stabilizing.
If the market starts to pick up we will see the top 6 indicators start to improve for sellers. For a downturn we would need to see them significantly decline from where they are now. We are stuck in neutral and experiencing a normal balanced market for the first time in over a decade. To sellers this is a rude awakening, as this is something they haven’t seen in the last few years.
Active listings usually peak towards the end of November and then start declining through December.
* Source ” The Cromford Report”
Find out what is happening in your neighborhood.This report provides this week’s housing market statistics and trends to help you better gauge market conditions.