Here are the three key signs that show our real estate market is shifting.
To determine whether the real estate market is shifting from a seller’s market to a buyer’s market, there are three warning signs that you need to look for:
1. Days on market. How long does it take for a property to sell on average? If the average is just 21 days, that’s pretty good. If the time increases to, let’s say, 45 or 60 days, that’s a good sign that prices will be adjusting downward.
2. Incentives. When sellers start offering more incentives, you know the market is on its way down. These incentives are signs that buyers are getting ever so slightly nervous about the market.
3. Supply. When supply starts to increase, that’s the ultimate sign of a market shift. If supply increases faster than demand, we’re moving away from a seller’s market to a buyer’s market. This could lead to an increase in demand and potential price adjustments.
These three signs will tell you where prices are going, but even in a downward shifting market, it takes a long time for the market to shift—anywhere from eight to 12 months to see a significant impact.
If you have any questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.