I’ve been talking quite a bit lately about “layers of value” or things that impact the real estate market. Values increase or decrease based on many factors. Let’s look at the image below to see some of the bigger influences for the Sacramento market. I shared a similar photo recently, but expanded it to include monthly mortgage interest rates and unemployment. What do you think?
Seeing the Trends: We all know an increase in interest rates and inventory tends to cool down values. That’s Real Estate 101. Yet at the same time, it’s still good to see visuals like this to reinforce what we know and also anticipate what the future of the market will look like as current trends unfold. As you can see in the image above too, there is definitely a stabilization of values that occurs toward the end of each year as the colder months ensue. Click the thumbnail to view a larger image to see this more clearly. By the way, feel free to use this graphic (unaltered) on your blog, social media or in a presentation. The only thing I ask is you link back if online.
Question: Any thoughts, questions or insight to share? Comment below.
If you liked this post, subscribe by email (or RSS). Thanks for being here.
Wow, there has been a huge change in months of inventory from around 2008, but it looks like it is back to where it was previously. We are seeing decreased inventory in the Birmingham, AL area which is causing values to rise in some areas. Nice graphics Ryan.
You’re about that. We had 14 months of housing supply in 2008 and many of us refer to this as the “foreclosure flood”. The market saw an amazing downward shift around that time too. As a further example, in Q1 2009 73% of all sales were foreclosures and 11% of sales were short sales. It’s amazing to think that 84% of all sales were distressed at one point, whereas now that number is only 20% combined (5% foreclosures and 15% short sales). Alright, that was a bit of a geeky response. 🙂