There are three basic kinds of real estate market trends: appreciating, depreciating and flat. Flat market trends are of no particular interest to investors, for obvious reasons. However, if you’re searching for a home where you plan to live for many years, choosing a house in a flat market could be a reasonable decision, assuming the home met your long-term needs.
A market that appreciates may be desirable for investment, especially when the appreciation rate is higher than the national average. Markets with skyrocketing short-term appreciation rates typically attract investors from all over the country. Eventually, most values will begin to level off, and the peak investment phase will eventually pass. Wise investors can more accurately gauge the market to get in and out at the appropriate times in order to maximize their profit if they have good information at hand. You must have a lot of skill to do this consistently and profitably.
Depreciating markets can be undesirable for investments. An appropriate profit strategy could be to buy homes at depressed values and refurbish them in hopes of improving and rebuilding the overall market value of properties in the area. This has happened in many areas of the U.S. through the years. This is a highly risky long-term strategy, and is typically not for the novice investor.
If you’re interesting in tracking real estate market trends, it’s important to get accurate value about the area risks associated with a particular market. Our HomeSmart Report is available at only $6.95 and is the only product of its kind on the market today. This comprehensive report provides information about foreclosure risks, sales turnover, fluctuations in value, and more. It makes an excellent companion to the HomeSmart Value Report, which provides an accurate valuation of a specific residential property.