As a 40+ year real estate veteran I get asked a lot, ”What do you look for that might indicate a market is shifting?”  I usually answer in the way that most brokers would answer that question…” Supply starts to increase, demand slows, the economic indicators in micro markets shift, etc.” …however; years ago my former partner and I discovered a tried and true indicator that has never let me down.

When houses on busy streets start to “sit” on the market and Realtors start talking about price reductions in every third sentence…that is a sign that the market is ready for a shift.

Currently, there is not a problem with houses selling on any street in what we call “destination markets” (those markets that seem to be benefiting most from the exodus from congested areas). Our open escrow to listing ratio continues to be record setting. In some markets, such as; Silicon Valley, Los Angeles or San Francisco… we are starting to see price reductions and houses on busy streets not selling at the same “clip” as they were before COVID. But, even in those markets, we are still seeing a lot of demand.

Remember, if you want to watch for our hyper active market to make a shift, watch those houses on busy streets…