How Can You Know When the Market Is About to Change?

By Ron Wynn

October 13, 2020 3 min read

Common sense reminds us that the real estate market runs in cycles, from periods of unexplainable, rapid appreciation to periods of consistent and predictable price escalation, to leveling periods to declining periods. It's really not a black-and-white, "now it's hot; now it's not" scenario.

There is never a need to panic, but for those savvy sellers who are strategically waiting for the best time to sell, you don't want to wait until the writing is on the wall. Times of consistent and predictable appreciation are perfect times to pull the trigger.

Here are the factors to watch.

1. When people are concerned about political policies and the outcome of a presidential election.

2. When unemployment increases or when trade and commerce show signs of pull back or loss.

3. When utility prices and oil and gas prices increase sharply.

4. When the stock market drops sharply and people experience financial loss as a result.

5. When terrorism becomes a reoccurring event, and when it appears that our country is unsafe or might be close to war.

6. When inventories of unsold homes are on the rise.

7. When days on the market increase.

8. When listings expire and are reassigned to a new real estate agent.

9. When price reductions are common and frequent.

10. When bidding wars become rare and sale prices below the listing price are far more common.

Discuss with your agent where the market stands, your concerns and any questions you have about the best strategy, timing and possible outcome.

It Might Not Be the Right Time to Sell Your Home

You receive postcards in the mail and letters several times a week suggesting you sell your home because the market is white-hot. That might be well and true, but that does not justify you selling your home now. There are certainly other considerations — personal, financial, legal, etc. Laws have changed significantly in terms of inheritance tax, and as real estate agents, we are not qualified to discuss taxes with our clients. An honest real estate agent will always suggest speaking with a CPA or trusted advisor before taking any steps to sell your home.

If you have been thinking about selling but have not consulted with your CPA, that would be your first step to take. Your CPA will explore other options that might benefit you more in the long run. For example, not everyone is prepared to be a landlord or a property manager, although there might be some financial benefits to holding your property until there is a stepped-up cost basis. Discuss with your trusted advisor.

For more information, please call Ron Wynn at 310-963-9944, or email him at [email protected] To find out more about Ron and read his past columns, please visit the Creators Syndicate webpage at

Photo credit: PhotoMIX-Company at Pixabay

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