Basically, the housing market is a term for the number of homes being bought and sold within a specific time period. The numbers are taken from homes that are bought directly from the homeowner or sold directly by the homeowner as well as from those that were purchased or sold through real estate agents, brokers, or other professionals.
Sometimes, you will hear the phrase, “It’s a buyer’s market,” or “it’s a seller’s market.” If it’s a buyer’s market, this means that it’s either a good time to buy a home because prices or interest rates are low, there is an abundance of houses to choose from and buyers have a lot of negotiation room. If it’s a seller’s market, it means that there may not be as many properties available, at least at the price the seller is offering, and the seller pretty much “holds all the cards.” Housing prices typically run higher when it is a seller’s market.
The housing market fluctuates, just like the stock market, and the fluctuations are caused by the same thing: the economy. If the economy is good and things are going well, this reflects in the housing market. If things are not so good, then the housing market will reflect this also.
Keeping up with the housing market is wise, but remember that it involves a lot more than just home prices and interest rates. It can also involve the amount of equity that a home can earn, mortgage terms, and other things that are involved with home ownership.
If you want to buy a home or sell your home, you might want to study the trends over a few months, rather than make any decision based on the latest information. By doing this, you will have a better understanding of the housing market picture. A Realtor can help you study trends and make the ultimate decision.