A Real Estate Recovery
What Does It Mean to Have A “Real Estate Recovery”?
Recent conflicting housing data has a lot of consumers confused, not to mention economists. With so much conflicting information, how can home owners and buyers possibly figure out where it’s the right time to buy or sell?
So what is really taking place in the real estate market right now? Especially the Frederick Real Estate market. Are we experiencing a real estate recovery?
Mostly, people are trying to figure out if the market has hit bottom and is now in recovery. Can they figure that out based on numbers?
The misunderstanding comes in the consumer’s understanding of a real estate recovery. The bottom is not like the bouncing ball hitting the ground, it’s not a moment in time. The bottom is a period of time, more like a trough with several stages.
- Home sales start to rise. We’re seeing that in the Frederick Real Estate Market, as demand is rising and the number of homes sold each month is between 5% and 15% higher than that of last year.
- After that you see investors, second-home buyers and retirees starting to buy.
- Then you see mainstream buyers back in the market.
- Next, you see pockets of metros recover, then metros overall, then the national index.
After all this, we’ll see the national market recover, and appreciation will return. You have to take all of these numbers into consideration, and see which way the data is leaning.
It’s really not important what the month-over-month data says, that is a snapshot and doesn’t really show a trend necessarily. How are the average and median prices compared to last year and what trend are they showing. Consider these recent headlines:
“Pending Home Sales Fall in April”
Now consider this graph that shows pending home sale numbers from the last several years:
Were sales lower in one month than the previous month? Yes. But compared to the previous year, no. The trend is very clear, home sales are climbing. We are in the midst of a sales recovery. Here’s a quick look at all the factors in the real estate market compared to one year ago:
Yes, we are in the beginning of a real estate recovery.
With today’s historically low interest rates we’re seeing the most affordable real estate market in decades. The present market is a great opportunity to buy Frederick Real Estate.
|The Highland Group
Frederick, Md 21704
TEXT US: 301-401-5119