The Real Estate Market
I'm putting this out there to give everyone an idea of how the market works, in a nutshell. This is going to be short because there are just so many variables. First things first.
What impacts the market?
The largest indicator of the market is going to be jobs. There is a DIRECT correlation between jobs and the housing market. What that means is as jobs, specifically good jobs, come in and increase, the housing market starts to rise because there is an influx of new buyers/sellers. That is the general gist of the matter. There are many other things like taxes, elections, as well as ordinances and policies set forth by state and local municipalities that can impact the market.
What do you need to know?
Most people are aware that the market goes up and down, and that it is hard to predict when that will happen. What I want to inform you of is how the market can behave. Let's take a look at my market in Charleston, SC. The past two years have seen growth, more jobs, more houses, and higher prices. This is due to the tourist nature of the area, as well as the fact that we have a fantastic port and many industrial jobs that are coming to the area from various manufacturers. This is important to note because it is a perfect example. Our market has hit a bit of a plateau. We hit the seasonal dip in August, when families have settled for the school year, and also got hit with a jobs uncertainty because of tariffs and trade negotiations on a national level. Those negotiations had an impact on the companies bringing in our jobs, causing a standstill until the national issues get resolved, and coming into our housing market having a direct reflection of that.
What does all of this mean for you?
This base understanding of what the market is and how it is directly tied to outside factors can help you to make a good decision when it comes to buying or selling. For example, if you are aware that jobs in your area are about to increase, you can watch and see the values of houses go up over a few years, making it a good time to sell. Conversely, the same is true for buyers, if you watch and see the same thing, a buyer can get in at the beginning point and potentially increase their equity in a relatively short amount of time.
Of course I have to mention that no one can guarantee future profit. Also this is a very quick glance into what the market is and how it works. There are a ton of factors that go into the market other than jobs, that just happens to be the big one. The biggest thing I have to stress is to operate in this market in a way you can sustain. That means assume that you will own your home through a downturn. Make sure you feel confident that you can continue to keep up with the home should the market turn.
Be smart, seek advice from professionals. Whether it be a real estate professional, legal council, or any other form of guidance, do your research there and pick someone who you know like and trust to advise you wisely. Check out my other articles at the top of this one if you need a guide on how to do so!
Keven Beach, Realtor®