Home Sales, What’s Your Market?

The housing market news today seems as grim as it has ever been. Yet, the reports you typically see often understate the fluctuations from one neighborhood to the next. Across the nation specific areas are bucking the trend of high supply, low demand. These areas are called micro-markets.

Housing market reports vary widely depending on what part of the country you are in.

If you’re a homeowner looking to sell a property but would like to be well-informed about home values before setting a price, there are a number of avenues you can use to evaluate your prospects.

To gauge the general trend for your area, look at sales that have closed going back at least five years. Scope median, rather than average, prices, as these are the more accurate barometer for home sales in your neighborhood. Also check to see what new homes are selling for in your area.

Gathering information on value fluctuations over a span of years will give you a general idea of price trends, which allows you to assess the relative strength of your market and enable you to price your home most effectively.

Enlist the help of real-estate agents who’ve closed sales in your area and inquire as to the details of those sales. Check with at least two agents and ask them to qualify their view of your home’s current value. After reviewing recent sales comparable to your home, ask why your home sits at the value they’ve chosen. Avoid the trap of hiring the agent that is simply telling you what you’d like to hear, and instead solicit the services of one who has a successful sales record in the post-crash era. Be sure to ask if they know of any deals, such as no money down homes.