We’ve all heard the gloomy outlook for the real estate market. It’s almost a nightly topic on the national news. But let me tell you that real estate is never national. It is always regional. So, how do you know what the market is doing in your neck of the woood? Here is a simple formula that can be used wherever you live.

If there are more houses coming on the market (new listings) than are leaving the market (going under contract) for three straight months, the market is in decline. Conversely, when there have been three consecutive months when more houses are going under contract than new listings coming on the market, we are experiencing an appreciating market.

So is the Shreveport – Bossier City market appreciating or depreciating? Let’s take a look at the figures for single family homes in our area. I’m going to look at the last 6 months of data to give us a good picture of the market trend in Northwest Louisiana.

As you can see, for the past six-month period, we have had more new listings than homes go under contract. That’s a clear case of a market that is depreciating. When something is depreciating it is going down in value. The prices of homes will continue to decline until this trend reverses.

What does this mean for you as a home buyer? Buy now! Don’t try to wait until the market bottoms out before making an offer on a home. Trying to time the market like that never works, because you don’t know the market has hit bottom until statistics show that is is on the rise again. By then, you’ve missed the bottom and home prices have started going up.

What does this mean for you as a home seller? Wait! Sellers need to recognize that we are no longer in the hot housing markets of the last few years. If you must sell your home, price it lower than comparable houses that have sold most recently in your neighborhood. Almost 1600 homes sold during the past six months, but they are the ones that were priced properly and ahead of the declining curve. And I can almost guarantee you that the houses that were priced right to begin with sold more quickly than the houses that got to the right price because of multiple price reductions.

Wherever you are, you can see whether your market is going up or down using the same method I used here. If you need the name of a reputable realtor in your area who can give you some of these numbers, I’ll be happy to connect you with someone. Just give me a call.