Real Estate Journal

Local economy, in particular the job market, has a uninterrupted influence on the local housing market. People who lose their jobs don’t have the power to buy houses; as a matter-of-fact they often sell. In areas where job growth is robust, you often find a strong housing market. On the other hand, over-building in an area can also result to excess inventory, which can put a downward pressure on prices. However, existing home sale figures aren’t necessarily a trustworthy predictor of the direction of the housing market because they are based on closed sales. Usually, existing home sale index gauge past sales activity.