Helping predict real estate trends

There's quite a bit of talk of a bubble in California real estate. It's very tough to tell when you are in a real estate bubble as you lack an outside perspectative. Here are some tips on predicting probable market trends.

How to tell if the real estate market is getting soft?

• Avergage selling time for houses has lengthend by 30% or more
  
• Widening gap between asking prices and final selling prices
  
• Vacancy rate in office buildings and other commercial real estate is increasing.
  
• Decline in the number of building permits issued
  
• Increase in inventory of homes on the market
  

How do you know if your local market is getting stronger?

• Local employment is rising 3% or more annually
  
• Stable or shrinking number of houses are for sale
  
• Are enjoys significant upgradind or expansion of retail business
  
• Extensive highway development or a new airport - improved transportation often brings growth to an area
  
• Major Land purchases are being made by expanding or relocating companies
  
• Many mew houses are of high quality
  
• High percentage of owner occupied housing in the neighborhood
  

As will all tips these note general trends. Hopefully you will be able to use these to your own advantage when making a real estate purchase.

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