Signs That the Housing Market is Improving

It can be hard to determine whether or not the housing market is actually improving. In order to best tell, there are numerous signs that can point you in the right direction!

Signs to Lookout for:

Sign #1: Starter Homes are Selling Fast

High demand for homes means that the available supply of homes will start to go faster. The amount of time that a home stays on the market decreases, and that means you will typically see desirable homes only stay on the market for thirty to sixty days.

Sign #2: Recovery in the Job Market

You can use online search engines to check and see how the job market is doing. The better the job market is, the more money people have to spend, which means the housing market is likely to begin improving.

Sign #3: Closed Businesses are Beginning to Reopen

When you see that businesses are beginning to open up then that is a great sign that people are beginning to try to flourish. Spots in your area that are either reopening or changing businesses all together can be a good sign that the housing market will be improving as well.

Sign #4: Interest Rates are Looking Good

When you see better interest rates, that means the market is looking good. The reason that this is a good indicator is because when financing options are more difficult, the interest is higher. Better rates mean more money that is available for financing.

Sign #5: Less ‘For Sale’ Signs

If you notice that no matter where you go, there are less for sale signs around, then that can be a good indication. If there are not a lot of for sale signs, then you are likely looking at the fact many people are currently buying homes!

Sign #6: The Median Sales Price Doesn’t Move Down

When the median sales price falls, that means the market is currently depressed. If it is continuously moving down, then you know what you are looking at. You want to see these prices stay still temporarily but ultimately move up!

Sign #7: Lack of Desperate Sales

If you see that there are less foreclosures and short sales, then you know that the market is improving! A stable market means sellers can traditionally sell their homes because they have equity.

Sign #8: There is an Increase in Buyers

You can see what the National Association of Realtors Housing Affordability Index tracks for the percentage of buyers that can actually afford to purchase a home. If you see a higher percentage on this index, then that means a person will not need as much income in order to qualify for a mortgage!


There are many signs out there that can show you whether or not the housing market is improving. If you take your time to not only view what is going on around you, but research online as well, then you will likely be able to determine where the housing market is at currently, and where it will go!