Here are 6 ways to tell when a market is recovering from a slump or heading into one:
1. Trendy businesses: If a new grocery store or hip coffee shop is moving in, it's likely that a lot of market research has been performed at great expense, indicating more money and activity on the way.
2. Limited buildable land, great location: If new construction is at a standstill due to land shortage, struggling neighborhoods in convenient locations could be ripe for renovation and growth.
3. Diminishing downsides: High crime rates and slow job growth are moving targets, so keep an eye out for positive changes in either, especially near coveted locations. And remember, Millennial-aged buyers may not have the same criteria as Baby Boomers when it comes to what they want in a neighborhood, so don't make any assumptions.
4. Architectural aficionados: Victorian, Spanish, mid-century modern and craftsman style homes often attract budget-minded buyers and trendsetters, and can be a boon to once-struggling markets.
5. New employment: Major economic development, such as big companies opening new facilities or offices in town, is a sure sign of turnaround.
6. Declining DOM: Slow and steady decreases in the "days on the market" for an area's properties may be one of the best indicators that something big is about to happen.
If you see any of these signs in your local markets, notify your clients fast—it won't be long before the deals are all snapped up! (source: Trulia)
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