Houses for Sale

Houses for sale market are influenced by the economy.

The following indicators are very important for predicting the direction of the economy and the health of the housing market: • Existing home sales; • Existing home median price; • Housing affordability • Employment and permit statistics; • Inflation watch • Mortgage delinquency by state

The existing home sales are an important variable for predicting houses for sale. The existing home sale for the country is 5.36 million units. This indicator is released the 25th of each month with the following information about sales volume, prices, real estate listings and interest rates. Also the indicators are a good reference for strategic management.

The existing home media price is $158,800. This shows whether the price value is appreciating or depreciating.

Housing affordability is determined whether one has the median income and it is sufficient to purchase the median price house in excess of a 20% down payment. The index would be 120% at minimum.

The employment and permit statistics are directly related to one another. When employment increases then the purchase of house sales supposedly increases. Subsequent to increase in employment and house sales companies that build new houses will ascertain permits to construct new houses.

Inflation is an indicator of what type of decisions the Federal Open Market Committee is going to make concerning interest rates. If the committee thinks that inflation will increase then they are subject to increase interest rates. Any increase in interest rates tends to discourage the purchase of houses for sale.

The mortgage delinquency by state measures the default rate for payment of mortgages. It tracks the overall default rat to the decision by the lender to foreclose. For example the default rate starting with the first mortgage payment, the second mortgage payment and the third mortgage payment. It measures the seriousness of a recession and it peaks and declines.

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