8 Signs Of Increase In Property Prices In Your Area

In 2007 when US economy went in a recession, real estate market also faces the same recession period and a number of foreclosures reported, many stories published in newspapers and channels also reported regarding vacant houses. It seems natural event. As in recession people loose their jobs and it becomes impossible for them to pay their monthly installments resultantly real estate market goes down suddenly.

Sign of Upswing

Sign of Upswing

There are many indicators which guide us that economy is raising and real-estate prices are going up. These signs also help you by analyzing upswing trend started in your neighborhood. Following are the eight key indicators which helps us in analyzing the situation of real-estate marketing:-

Affordability

Affordability is the most important factor in estimating the upswing. The calculation of affordability index helps us in determining the purchasing power of the people which is the most important thing in real estate prices.

Existing Homes Sales

The figure of current home sales in the country plays an important part in determining the upswing. This factor consider as the prime capacity of the residential real estate market, as per The National Association of Realtors.

Housing Market Index

This index is about figures regarding current sales of single family homes and estimated sales of single family homes in next six months. The figures are based on the information provided by the National Association of Home Builders.

Mortgage Rates

Mortgage rates come from market survey. It asks lenders and buyers all around the country on weekly basis.

The survey has been conducted for more than 35 years and is considered one of the most reliable surveys in USA. This factor also plays an important role in analyzing the real estate market.

New Residential Construction

The figures regarding new residential constructions normally issued by the U.S. Census Bureau. It consists of tow types of figures. The first is building permits issued and the other one is the figures regarding what construction takes place.

New Residential Sales

These figures also issued by U.S. Census Bureau. It provides information to the customers regarding figures of new residential sales. Since this is about new homes build in the country, therefore, the figures used in this index were taken from building permits provided by the authorities in the country.

Purchase Application

This index provides information and figures of purchase application received. This helps in indicating the level of confidence of people about their financial standing and ability to buy a new home. As the number of application increased, the market swings upwards and construction jobs increased. This index directly proportionate with the market prices.

U.S. Foreclosure

U.S. Foreclosure

This index gives us information about the number of foreclosures appears in the country. This indirectly proportionate with the market prices of real estate industry.

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