AgentMarkets & Economy

Is a downturn looming ahead for your market?

Learn to read the signs in your area
  • The real estate market seems to run in 10-year cycles.
  • Both presidential candidates want to change how we are taxed.
  • You might have a seller's market in some price ranges and a buyer's market in others, especially if the market is in transition.

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Like all markets, the real estate market is cyclical. Price range, location, the economy and a host of other factors all come together to determine how good or bad your market will be. The question is, how can you predict what's ahead for your market? In a recent column, I explained why we cut our listing price just two weeks into the listing period. My gut told me we were a bit high. What sealed the decision was that there were 12 to 25 months of inventory in our price range, depending on how you set the search parameters. Based on my experience in previous downturns, this was a clear sign that price reductions were coming, even though other parts of the Austin market were still strong. When I discussed the issue with our listing agent, she checked the activity on the MLS. Activity was down in both the condo market and the luxury market. The spring-summer selling season was also much shorter than it was in the past several years. Moreover, the brokers in her office wer...