The state of our local Real estate market always comes down to two things- Affordability and Availability.
Affordability is all about demand….Who wants it? What can they afford? And what will they pay.
Availability is all about supply…. How much is available? What does it cost? What will they sell for?
If, over time more listings are selling, you are in a Sellers’ market…if less listings are selling you are in a Buyers’ market. Our job as Realtors is to pay attention to the trajectory of our local market, so that we can see ahead of everyone else when the market starts to shift. This will allow you to advise your Buyers and Sellers accordingly, and change our marketing message to fit the shifting market.
The 7 factors that affect Affordability and Availability are
1. Inflation
2. Interest rates
3. Population
4. Employment
5. Household income
6. Neighbourhood dynamic
7. Home prices