Buying a property requires you to look into a wide range of factors and conditions. You will need to check out the location, assess the crime rate in the area, and of course, calculate the mortgage. But one important factor that many buyers overlook is the situation of the local housing market.
Knowing the status or condition of the local housing market affects decisions in more ways than one. The interest rates, resale values, and even mortgage packages are all affected by the prevailing market condition. If you have not been considering this, now is the right time to change your mindset.
Of course, your goal is to buy a house and land package from a strong and reliable market. Here are some signs that your local housing market is great:
Interest rates are reasonable
Interest rates are among the most important determinants of a good housing market. Lower interest rates usually mean that the buyers have higher purchasing power or that lenders have a lot of money to lend. The dynamics here actually heats up the housing market.
Sellers are looking to upgrade
People sell their real estate properties for many reasons. When the market is bad or there is a recession, people are selling their assets to have money. And they either settle for renting a space or moving to a smaller house. But in a good housing market, property sellers actually want to offload their real estate asset because they are looking to upgrade.
There are many real estate agents
The number of real estate agents and brokers in the market also tells a lot about the overall health of the industry. During troubled times, real estate agents leave the market and settle for another job. But when there are many agents anywhere, it is a sign that there are a lot of homes or properties to sell — and that only tells that the market is actually thriving.
The number of stores, shops, and businesses opening in a certain area just means that the properties near them are selling fast. This simply means that the market is stable, as people have good purchasing power. So when buying a property, always make it a point to check the number of shops and businesses in the area. Lack of them may mean that local market is just starting to rise or is in a recovery phase.
The competition gets quite tough
Real estate can be competitive, but do not take it as a bad thing. A reasonable level of competition in the market just means that the industry is in good shape. However, be wary of a cutthroat competition, as this means that the properties are insufficient. And this may mean higher prices.
Time your purchase
Other than location, budget, and lifestyle, timing is of the essence when buying a property. Pick a time when the market is thriving, as this may mean that starter homes are everywhere. This also means that you can find a property that is within your budget.