1. Median home price: The median home price of an area can indicate the overall affordability or desirability of the real estate market.
2. Days on market: The average number of days a property stays on the market can provide insight into whether the market is hot or slow. A shorter time frame suggests a more competitive market, while a longer time frame may indicate a buyer’s market.
3. Inventory levels: The number of houses available for sale compared to the number of buyers can influence pricing and negotiation power. Low inventory often leads to higher prices, while high inventory can favor buyers.
4. Price-to-income ratio: This ratio compares the home prices to the local median income. It helps buyers determine affordability and understand if the prices are inflated or undervalued.
5. Mortgage interest rates: Changes in mortgage interest rates impact housing affordability. Lower rates can make buying more attractive, while higher rates may deter buyers and slow down the market.
6. Job market: A strong job market with low unemployment rates can drive real estate demand, attract buyers, and increase home prices.
7. Population growth: Areas experiencing population growth tend to have strong real estate markets as the demand for housing increases. This can lead to rising prices and potential investment opportunities.
8. Rental market trends: Rental rates and vacancy rates can indicate the health of the local real estate market. High rental demand can be an indicator of a strong buyer’s market.
9. School district ratings: High-performing school districts often drive demand for housing in the surrounding areas and can impact property values.
10. Development and infrastructure projects: The presence of new infrastructure developments like transportation improvements or commercial projects can positively impact property values and attract buyers. Conversely, the absence of such projects may signal a stagnant or declining market.