If this is your first time buying a house, or if you consider yourself a “seasoned homeowner” and you’re looking to make a house purchase, you might be asking “are house prices high or low?”
The current state of the world can seem to have thrown the real estate world upside down. What we look at as a guide for whether prices are going up or down may seem unreliable. However, there are a few things you can watch out for to help get an idea of what to expect. Whether you’re buying or selling, it’s good to keep these 4 things in mind.
How Long are Houses on the Market?
The less time a house is on the market, the faster you can expect other home prices to rise.
Ultimately, when houses are flying off the “shelves” faster and faster it’s a sign of 2 things:
- Houses are being listed below what people are willing to pay
- There are more people looking to buy than are houses available
Both of these are pretty reliable signs that the prices of homes on the market are about to increase.
So if this is your first time looking for a house, or you’re looking to sell yours, keep track of how often houses go on and off the market in your area. If the window is narrowing, prepare yourself for prices to start rising.
How Often are Houses Selling Above List Price?
Start asking around… if houses are selling for more than they’re being listed for, it’s a sign of multiple parties being interested, and a sign that prices are going up.
If you’re working with a realtor, ask them to do comparisons in your neighborhood–they can check what houses have been listed and sold for in the recent weeks and/or months. That’ll give you a good overview of whether or not houses are going for more than they’re being listed for.
Now, if you’re not working with a realtor, the internet is a really helpful tool. Sites like Zillow, Realtor and Trulia all have databases for recently sold homes that you can look at from your phone or computer.
When doing this, make sure you’re looking for the list price and the sold price overall. Just because one house went for more than it was listed for doesn’t necessarily indicate a trend.
Increases in Infrastructure and Interest in the Neighborhood
Take note of a few things while you drive through the neighborhood you want to live in. Are there new businesses opening up nearby? Are any streets or roads undergoing repairs or even being widened?
These are all signs that the neighborhood is undergoing an increase of interest. The cost of housing increases when more people start bringing business to the area or the area becomes a more popular route to pass through.
Bidding Wars Raising House Prices
Have you been pushed out of multiple house offers by a higher competitor bid?
Understandably, it’s gut wrenching when you’re outbid on your dream house. It’s a sure sign that housing prices are on the rise when you get caught in a cycle of multiple offers more than once.
Have More Questions about Rising House Prices?
Give us a call! At Frank B. Pallotta Law we are licensed Real Estate Lawyers with 20 years of experience helping our clients in Georgia navigate the closing process. Reach out to us with your questions. We’re here to demystify the closing process, one question at a time.