I love sharing articles that give good and educational information to our readers. The popular question on the street now is how to tell if your housing market is improving, whether you are buying or selling a Miami Beach home or you’re contemplating moving to Miami Shores or any of the neighborhoods we concentrate in.
Believe it or not, there are tell-tale signs that are not obvious, but are sure indicators of a recuperating real estate market. Elizabeth Weintraub, in her article, How to Tell if Your Housing Market is Improving, gives us 10 ways to know:
- #1 Sign Housing Market is Improving: The Job Market Recovers – have you noticed acquaintances that were previously unemployed are finding jobs? Maybe you don’t see as many cars in driveways as you used to.
- #2 Sign Housing Market is Improving: For Sale Signs in the Neighborhood Vanish – many neighborhoods are seeing what we call a “decrease in listing inventory”, we do monthly market reports here in Miamism that identify these markets.
- #3 Sign Housing Market is Improving: Median Sales Prices Stop Falling – make sure you look at median sales prices in your particular neighborhood so you can have a clear assessment.
- #4 Sign Housing Market is Improving: Starter Homes Sell Faster – we are seeing a lot of first time buyers getting frustrated after placing several offers on different homes. In some cases there is a multiple offer scenario on starter homes right now (whether or not they need work).
- #5 Sign Housing Market is Improving: Closed Businesses Reopen – and you see less commercial vacancies when you drive through town
- #6 Sign Housing Market is Improving: Distressed Sales Disappear – which means no more competition with absurd low prices, home owners can now be rational when selling their homes.
- #7 Sign Housing Market is Improving: Real Estate Companies Hire Agents – this may not be as obvious to the consumer, but it is to those of us in the industry.
- #8 Sign Housing Market is Improving: Interest Rates are Attractive – although this may be tricky, since the government sometimes lowers interest rates to try to help the economy.
- #9 Sign Housing Market is Improving: More Buyers are in the Market – the rule of supply and demand is never wrong. But in this case, it’s about buyers loosing the fear and actually making a move.
- #10 Sign Housing Market is Improving: Sellers Buy Move-Up Homes – you may see the opportunity to buy a bigger/better house and it’s easier to move than remodel or add on.
We can’t stress enough the importance of not making generalizations about large metropolitan areas though. Don’t look at “dade-county’s median home sale”, make sure you look at your particular neighborhood. The Miami Shores housing market, for example, is already seeing an upward trend, as well as many other areas within Miami. Another sign is the rental market, decrease in rental inventory and increase in rental prices is another sign of an improving housing market.
We are getting this question on a daily basis and you need to pay attention to your community and its trends – don’t take our word for it, the signs are out there for you to interpret.