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15% Of US Housing Markets
Currently, 62 markets (15% of all U.S. real estate) experienced ‘real’ (inflation adjusted) declines in property values compared to the prior Quarter.
For the same period last year 175 markets (43%) saw Q-O-Q declines.
Note: Because of seasonal variations between quarters, it’s best to compare Q-O-Q changes to the ‘year ago’ period rather than the immediately preceding quarter.
(See the entire list of declining markets below.)
In addition to the list of declining cities below, we also use our Advance-Decline (A-D) Indicator that aggregates and tracks Market Breadth.
Market breadth is a study used in Technical Analysis that attempts to gauge the direction of the overall market by analyzing the number of markets advancing relative to the number declining.
Changes in Market Breadth can act as early indicators for changes in the market cycle.
Note how the correlation between the red A-D line (which has been on an upward, strengthening slope for the last year) is starting to break-down in relation to the blue APPRECIATION line (which has been slowly declining over the last year).
Normally, this divergence would be viewed as a positive signal for the market; the blue appreciation line would tend to ‘catch up’ to the red A-D line in the coming quarters.
But… these are not normal times.
Because of COVID-19,
investors need to pay close attention.
The only accurate way to analyze and anticipate local real estate market moves, especially in times like this, is with Technical Analysis (TA) and HousingAlerts.
‘Market Psychology’ will decide which markets are winners or losers, and only TA can track that driving force.
As with all Quarterly vs. Annual comparisons, you’ll see more variance with shorter time frames. It’s common for this red line to fluctuate up and down.
This A-D Indicator can also be used on State and Regional levels for more granular insights. PRO level members can customize this indicator by logging in and visiting the ‘Advance-Decline’ tool.
Below is the list of cities with
declining Quarter-Over-Quarter home prices…
If your markets are on this list, DON’T panic!
ONE data point, whether it’s for a Quarter or a Year, doesn’t necessarily mean it’s time to buy, sell or hold… or do ANYTHING different, other than pay closer attention. That’s where Technical Analysis (TA) comes in.
TA is a 500 year old science to help predict future market swings. TA is used by every Wall Street investment bank and every global stock, bond, currency and commodities trading firm on the planet for TRILLIONS of dollars in DAILY trades.
We invented TA for local real estate
markets and have the most accurate local
market cycle predictions on Planet Earth
If you want to maximize your Investing, Wholesaling and Flipping profits while minimizing risk, capital and effort in ANY U.S. real estate market, you need to invest WITH the market. Come join us and enter the world of Intelligent Investing.