How do you know if your housing market has reached the bottom?

November 20, 2008

All markets are different. During the next few years, some housing markets will turn around faster than others. How do you know when your particular market has reached its bottom? If you wait until others pick over the great deals, you'll miss the bottom.

Keep a track of how many properties are listed from month to month. Once you start to see a reduction in inventory then that may mean that buyers are starting to buy. There could be two reasons whey inventory is reducing – overpriced homes may be taken off the market and sales volume could be picking up. You can find out this information from your local real estate agent.

Keep reading national and local newspapers. If your local media reporters are now starting to interview experts in your market and asking questions like, “Have we reached the bottom?” then that might be a sign that there may be a shift.

Talk to your friends and co-workers. How are they feeling about your local economy and housing prices? Are they more optimistic now than they were 3 months ago, or even last month?

Consumer confidence will be a big part in the housing market turning around.

Be on the lookout for mortgage interest rates stabilizing and mortgage companies start to ease lending restrictions.

One of the biggest indicators is when prices have stopped dropping. The secret is to buy before they start to inch back up again!

I’m not suggesting that you wait till the absolute bottom of your market to buy. You have to look at a home as a place to live, not an investment. Only you can determine what an affordable monthly payment is relative to the value of the home you are purchasing. There are individual homes for sale that can be bought at the bottom of your market, even if homes in general have not reached that mark.

Talk to a trusted real estate agent – we can help!

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Chelmsford was founded by settlers from the adjacent communities of Woburn and Concord, Massachusetts. The town was incorporated by an act of the Massachusetts General Court in the last week of May 1655 and named after Chelmsford, England. The nearby communities of Groton and Billerica were incorporated at the same time. Chelmsford originally contained the neighboring towns of Westford and Carlisle and also contained part of Lowell. In 2005, the town celebrated its 350th anniversary. The town motto is "Let the children guard what the sires have won." Ralph Waldo Emerson opened a school in Chelmsford in 1825, closing it after a few months to take over his brother's school in Roxbury. -- Source: Wikipedia.com

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