Advanced: Reading Market Trends — When to Buy, Hold, or Wait
Use REHunter data to read neighborhood trends: appreciation, days-on-market, inventory levels. Know when a market is hot, cooling, or bottoming.
Advanced: Reading Market Trends.
Why Market Timing Matters.
The same deal in a hot market vs a cooling market produces completely different results. REHunter gives you data to read the market — not guess.
Key Metrics to Watch.
- Days on Market (DOM). How long properties sit before selling. Trending down = hot market (act fast). Trending up = cooling (negotiate harder).
- Months of Inventory. How many months it would take to sell all listed properties at current pace. Below 3 = extreme seller market. 3-6 = balanced. Above 6 = buyer market.
- Price per SF Trend. Is it rising, flat, or falling in your target zip codes?
- Sale-to-List Ratio. Are properties selling above asking (hot) or below (cooling)?
How This Affects Your Investing.
- Hot market (DOM under 20, inventory under 3): Offer fast. ARV estimates are conservative — values likely rising. Competition is fierce. Pay closer to 75% of ARV.
- Balanced (DOM 20-45, inventory 3-6): Standard formulas work. ARV estimates are reliable. Normal competition.
- Cooling/Buyer (DOM 45+, inventory 6+): Be patient. Offer lower — sellers are desperate. Hold periods may be longer. ARV may decline — use conservative estimates.
Using REHunter for Market Analysis.
When you run a CMA, look at the comps carefully:
- Are recent sales higher or lower than 6-month-old sales? (Trend direction)
- How many days did each comp take to sell? (Market speed)
- Are there many active listings in the area? (Competition for buyers)
The Rule.
Check market trends BEFORE committing to a new zip code or neighborhood. 5 minutes of research prevents 6 months of holding a property that will not sell at your projected ARV.