The real estate market has always been a reflection of the overall economy and the forces that move it. It seems to go as the perception of the economy goes. In order to make some sense of that, comparing some key numbers adds perspective…like the number of pending sales, average sale price, number of listings on the market, etc. Each one says something different about the market. For an in-depth analysis of last months residential real estate market activity in central Indiana, including actual numbers, charts and graphs, take a look at my latest Market Watch newsletter.
Possibly the best window on the market however is the number of showings occuring. The number of people out looking at homes reflects the “buzz” in the marketplace…which actually does translate into sales in the near future. That number increased dramatically the last few months, induced somewhat by government incentives for first-time and seasoned home buyers. Showings have declined from those levels but still are respectable. For me personally though, the best indicator is the number of phone calls I get from buyers and sellers. When the phone is quiet that says a lot. But lately the phone has been ringing often, and there is an obvious increase in activity from before. People seem to be shaking off the paralysis that gripped parts of the market the last two years…mainly media induced paralysis I still say…and they are moving forward. A reflection of the economy in general? I think so.
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