Seeing the Signs of a Housing Rebound

photo credit: >Kirill

Real estate prices across the United States have been hit really hard in recent times, but in some areas things are really starting to turn around. You have to keep a good eye on your local area to see when housing prices are starting to rebound, especially if you’re considering selling or buying. Money Magazine put out a list of signs that the housing market in your area is rebounding, so take a look at these indicators to figure out what’s happening to real estate around you:

• Is the inventory of homes for sale decreasing? A stable market should have six months’ worth of houses and they should take about 90 days to sell. If the figures for your area are returning to these levels, it’s a good sign.
• Is the average price of housing falling more slowly? Once the fall in prices starts to slow down, a turnaround becomes fairly inevitable. However, once they do reach rock bottom, they are likely to remain stable at that low price for several months at least.
• Which is cheaper, renting or buying? You can calculate the price-to-rent ratio by knowing the cost of a home and how much it would cost to rent. As this ratio gets lower more people will be looking to buy.
• Have houses become more affordable? Check an affordability index (it considers how much of a family income is needed to pay for it) and see if the rate is improving.

Tags: Economy & Business News | Housing Market | Real Estate | Saving Money