Is it a good time to sell, buy or invest?

Many real estate agents will tell you, “it’s always a good time to sell, buy or invest”. Is that s true statement? Not necessarily, it depends on numerous factors. Which real estate market currently exists and who decides what type of market depends on who you ask.

• Does the supply exceed the demand. How is the supply measured or quantified? The inventory level is one of the easiest ways to determine supply. The more difficult question is how is demand measured or quantified? We can look at the number of pending transactions, but that is not an accurate measure alone.
• What is the average days on market over a specified period of time, for example on a quarterly basis or year over year?
• Where are prices trending, up or down? Are there price reductions in the market? If so, how do those homes compare to the overall inventory of homes?
• How are the current inventory levels changing over the past month, quarter or year over year?
• One definition of a “real estate market” is to
  1. divide the number of homes currently on the market by
  2. the number of homes that have sold within the past month.
  3. If the result is above 7, it is a buyer’s market.
  4. If the result is below 5, it is a seller’s market.
• A more challenging assessment of current real estate market conditions will depend on
  1. individual towns or cities
  2. individual neighborhoods or communities within each town or city
  3. geography such as waterview, waterfront, mountain views. wooded areas, in-town or walk to town, etc.
  4. type of home (colonial, split-level, contemporary, antique, farmhouse, etc.
  5. age of home
  6. pricing and
  7. days on market