Thursday, July 26, 2012
In any real estate marketplace, you can always tell the tops and the bottoms by their volume of transactions. If prices are at record highs, keep a sharp eye focused on the number of transactions occurring. If that volume of deals is increasing, then the market still has legs and prices will more than likely continue to increase. If volume is drying up, the peak has been reached and prices have nowhere to go but down. When values are in a huge slump, watch for an increase in sales activity volume, it is the harbinger of price stabilization and then appreciation. Volume is a great leading indicator.