The real estate market is in a continually fluctuating state. While at times the market can be booming, it can also turn to a bad real estate market in a relatively short period of time. In many cases, the market drops that have occurred in the last two decades have been preceded by years of booming real estate market increases. It is important to recognize some of the warning signs of a potential real estate crash if you own property that you are considering selling anytime soon.
Overall, the best real estate markets are ones that show a steady progress with moderate growth. These times are usually the most favorable for selling property. When the housing market is running at a high market level for sellers, there are usually some definitive concerns that a crash is pending. That is because historically, when the market is too robust, there are usually false market factors in place which can cause sudden crashes.
When the housing market does crash, the shift can happen quickly, and the tide can turn from boom to bust in a matter of a few months. These are some of the warning signs to look for that usually precede a real estate market crash:
• Many Homes for Sale Have Multiple Bids
• Houses are Selling for Much Higher Amounts Than The Market Price
• Home Values Increase Rapidly
• Many Homes are Selling in Less Than 60 Days
• Mortgages are Given Readily to People with Below Average Credit
• Mortgage Companies Show Signs of Reckless Lending Practices
• Demand for Homes Far Exceeds Supply
When these signs start to appear, it is worth paying attention to and note that selling a home during this time can have one of two outcomes. They can either go through quickly at a decent sale value or the market can begin to stagnate and cause significant problems for the sellers and buyers. When the market changes rapidly to a buyers’ market instead of a seller’s market, the shift can cause major problems. Signs for a shifting market into stagnation and a poor housing market include:
• The Housing Market Becomes Flooded with Homes
• Home Sales Progress Slowly
• Obtaining a Mortgage Becomes Much More Difficult
• Buyers Become Increasingly Fickle and Difficult
• There are Much Fewer Home Buyers
• Buyers are Less Qualified
• Sale Prices Drop
• Closings for Home Sales Take Much Longer
No matter what type of real estate market a home owner is looking to sell their home in, it is important to understand that there are things that can cause big problems for sellers. Insect infestations, clouds on the title, as well as mechanical and structural problems can cause delays and problems. For sellers It is helpful to have professional realtor representation to help sort this all out. While realtors charge a commission for selling a home, it is usually worth the expense. Sellers can better understand the commission structure by going to websites like https://www.upnest.com/re/realtor-commissions/ to learn more.
No matter what the present real estate market is, it is important to understand there are constant ebbs and flows in every market. In general, the busiest season for buying and selling a home is in the spring and fall. That is because many people vacation in the summer and they chose not to move during the heat of the summer. Additionally, for many people the winter is a bad time to move for a variety of reasons. Most buyers prefer not to move and disrupt their families during the holidays and do not like to move during potentially inclement weather periods.