Market values play a great role in determining the prices of Fairfax VA homes for sale. Knowing which type of market the real estate industry is currently in will help you greatly in getting amazing deals when home buying. So how can you tell if the market is going to change?
Savvy real estate investors and insider experts use what is called the ‘list to sale ratio’ in order to predict hidden market trends. With 100 listed Fairfax VA homes for sale, ten of them getting sold in a month means the jurisdiction has a 10% list to sale ratio for that month, meaning 10% of all available listings were sold. Like a real estate barometer, list to sale ratios below 15%-20% generally mean a buyer’s market. Conversely, 50% or more means it’s a white hot seller’s market and that’s very, very strong.
List to sale ratios almost never go up all the way to 100% because many listings are either overpriced, ugly, or simply pure junk deals. But if the ratio suddenly changes to 15%-30% coming from a buyer’s market, then that signals a market transition. These transitions don’t happen in just one month though, as the real estate market is very sluggish compared to the stock market. However, consistent upward or downward shifts in three consecutive months form a trend, and these trends rarely reverse in real estate.
It’s during these changing trends that great opportunities to buy Fairfax VA homes for sale abound, but only if you can time your purchase.
For example, if a marketplace has held on to a 15% average list to sale ratio for the last couple of years then suddenly experience list to sale ratios of 25%, 28%, and 26% in the next three months, you’ve discovered a confirmed trend. That would be the best time to buy a house since you’ll be buying below market value. Prices will start to go up during this buyer to seller transition market, so the house will actually appreciate maybe three months later.
Using this insider information will let you get the best deals for Fairfax VA homes for sale but it’s not something for novices of real estate market readers. You need a very experienced buyer’s agent to know all the details involved but you can start by signing up for my free webinar to get more specific information for Northern Virginia trends.
Thierry is a Real Estate Agent at RE/MAX Premier, and Host of Talk Radio’s, “Inside Real Estate”
Thierry & his team Guarantee a $25,000 minimum savings for Northern VA Homebuyersby applying his unique insider techniques & strategies that he discovered throughout 8 years of exclusive Radio Interviews & Insider Access to wealthy Real Estate Insiders, Investors & Top Industry experts.
Phone: (703) 222-6714.
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