Signs Of A Healthy Housing Market

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While a housing transaction might look like a daunting task, if you read the basic signs correctly, a home sale/purchase will not feel like a gamble. 

Here are some signs that will accurately reflect the health of any housing market. 

The Young Are Buying, Not Renting - When entry-level/starter homes (INR 40-75 lacs) are in high demand, it's a sign that the housing market is on the right track. Note that when the market is jittery, young and first-time prospective home buyers typically opt to rent instead of buying.

Steady Growth In Housing Prices - Cost of housing does not increase in an unhealthy housing market—they decrease to attract new buyers as unsold homes sit on the market for months or years at a time. When the market is healthy, home price tags will typically rise, and sometimes, rapidly.

Mortgage Rates Are Low - Here's a thumb rule when it comes to housing loan interest rates. The higher the rate, the higher the risk for the bank. If mortgage rates are low, it's a sign of good health for housing. Increasing home loan rates mean risk on lending is rising and a poor market could be the reason.

Real Estate Companies Are Hiring - One of the easiest signs to read. When you get a lot of 'Immediate Joining' posts on social media/job portals from real estate firms, it signals a healthy housing market. When real estate folks are being laid off, or are unemployed for long stretches, the market is bad. 

Homes Are Affordable - What's the point of a healthy housing market if people can't afford homes? Red hot markets with high price tags are signs of poor health. Price tags which foster demand and enable purchases and sales point to good health. 

Sellers Are Buying Bigger Homes - When the housing market is healthy, sellers typically feel comfortable buying larger homes, shortly after selling their existing one. When the market is unhealthy, home sales often happen in distress - to close the home loan, get out of the EMI commitment and survive. 

🕹 Manual Override Clause: Your Mother In Law Says It's Time - Ignore all that chatter above and do as she says. The peace that will get you can help you walk through hellfire. Unhealthy housing market? Piece of 🍰