This article from CNN Money provides great insight on how to spot if the San Clemente housing market is rebounding.  First thing everyone needs to remember is real estate is localized and should not be simply compared to how the national housing market is performing.   With this being said, keeping track of a few key indicators should give you the buyer or seller a sense if a turnaround is coming:

1. Local Job Market - unemployment staying steady or decreasing will help the market recover quicker
2. Inventory on the Market - a significant reduction in inventory and an increase in sales will help prices stabilize.  Inventory levels in a steady market is approximately six months and homes on average stay on the market for 90 days.   More importantly, verify San Clemente real estate market is returning to its pre-bubble levels
3. Home Prices Falling at a Slower Pace - Three months of smaller price drops should provide confidence the market is shifting
4. Is it Cheaper to Rent than to Own - the price-to-rent ratio (home purchase price  / annual rent) should come back in line with pre-housing boom levels
5. Are Houses More Affordable - If people cannot afford to buy then sales won’t rise, so checking if the affordability index is rising in San Clemente is pertinent
6. Foreclosures - The number of San Clemente foreclosures is a definite sign of the health of the market, however, this is a lagging indicator as it can take six months or more from when a homeowner first defaults and goes into foreclosure.  Defaults have occured because prices are falling and homeowners have no equity to refinance, and therefore, these individuals will need to see prices not only stabilize but rise for this to change.  However, this means that the market will have already started recovering by the time foreclosures start falling so be careful using just this as a gage to get into the market.

We are your San Clemente Real Estate Specialists that can provide an in depth analysis on the above in addition to other pertinent information.  If you want to get more comfort over your timing to purchase or sell, then please contact us today as we will provide all the information outlined above in addition to other pertinent information to assist you in the purchase or sell of your San Clemente home or condo.

This entry was posted on Saturday, July 26th, 2008 at 11:20 am and is filed under Buyer & Seller Tips, Market News & Analysis, Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.