Real Estate Market Top
My first post where I called the real estate market top was June 15, 2021 (https://www.brokerforyou.com/brokerforyou/real-estate-market-downturn/ ) just a couple of weeks ago. Then, two days later on June 17 I had a follow-up post ( https://www.brokerforyou.com/brokerforyou/real-estate-market-bust/ )where I added additional indicators, that to me showed that the market was in a topping phase right now! I put the links to each one of those prior post above, and would suggest if you’re interested, to reread those posts!
Today’s post, concerns my original indicator, changed listings that appear in the Prescott Valley Arizona area. If you look at the image above, you’ll see that for the eight listings that are shown (I could show many more just changed listings, but I don’t want to scroll down, these listings are coming up in random order), of these first eight random real estate listings that are shown, today, all eight are showing price reductions!
Real Estate Market Top
Again, this is far from scientific analysis, and it’s only one indicator, but when compared to this same indicator used in my story on June 15, you will see that the number of price reductions has substantially increased!
If you’re wondering why you haven’t seen any stories in the news about a market top for real estate, it’s because stories like this almost never occur until the reversal in trend is firmly established. The problem then, is that by the time the news media is talking about change for the vast majority of people in the real estate market it’s too late to take definitive action based on the reversal in trend.
You really cannot equate the residential real estate market to the stock market. In the stock market dramatic moves that happen in one day or two are immediately reported on the evening news. But, in the real estate market because of the time it takes to market the property, secure qualified buyer, enter into the escrow and inspection. And finally, if everything goes as planned successfully close the property, can take easily between 30 to 60 days.
Also, keep in mind that the red flags that I pointed out in my prior articles are leading indicators, where actual lower close sales, or a downturn in the amount of sales are lagging indicators
Personally, I have over three decades of residential real estate sales experience, but, with that said these are just my own personal opinions. Obviously, I believe my opinions are correct, but I’m not infallible, and any many factors can change the trends in our real estate market. With this said, before acting on any major real estate purchase or sale decision one would be extremely foolish not to first consult with your own legal and financial advisors before making the move that could turn out to be detrimental for your particular situation.
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