It's easy to see where the real estate market has been as well as where it is today. However, if you are a current home buyer, seller, or investor what will affect you more is where the St Louis Real Estate market headed and what does the future St Louis real estate market hold in store? While we can't predict the future, we have developed some very good reports that give us some very good insight into where the market is headed and is particularly good at allowing us to see a change in the market (such as from a buyers market to a seller's market or vice versa) before it has actually happened and become obvious to everyone else.
Economists talk a lot about "leading indicators". If you listen to economists discuss the state of the economy, unemployment, or the housing market you will hear them make frequent references to "leading indicators". They are referring to data they are studying that gives them insight into where things are headed before they get there. This is exactly what we have done with the Leading Indicator reports we have developed.
Listings that just went under contract. Our first leading indicator report is on new contracts on listings. No, we are not talking about closings of sales that may have taken place 4, 6 8 weeks or more ago but new contracts just accepted on current listings. This gives us a glimpse into what the volume of closed sales will be a month or two from now when those deals close. The contract activity also gives us an early indication of a change in confidence or demand by home buyers, good or bad.
New listings. Our next leading indicator report is on new listings. This data is a little easier to track and like the prior report, gives us insight to where the market is headed. One of the things we look at is the relationship between these two leading indicator reports to see what the trend is. Are new sales happening at a larger volume than new listings or is it the other way around?
We analyze the data and compare it to the prior period and prior year. The reports we produce are good but to get the most out of them we compare the current data with the prior week's data so that we can spot a shift or change as it happens and we compare the data with the same period last year to give us insight as to how this year's market is with last year at the same time. Watching this on a regular basis will also give us an early indication of a change in the market.
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