Local market trends can help you tell whether it’s reasonable to act as soon as possible or wait for the right moment on a sale or a purchase. After all, making informed decisions can make a huge difference in how much profits or savings go straight into your pocket.
Aside from the support and guidance of real estate agents, buyers and sellers can also get on the work of finding out whether it’s an ideal time to sell a property or buy one. Here are some ways to know better your local real estate market.
Look for Information on a Particular Demographic
Property buyers should remain diligent in their efforts to gather as much information as possible related to current market trends in their area. For instance, you can make a checklist of the price for renovated or unrenovated homes or the average timespan for a property to remain on the market in that locality. County offices can provide a wealth of information to those who know how to search for it, and online aggregators make it possible to source data from the comfort of your home.
It’s also crucial to consider who are the top real estate agents and the most prominent investors around the area. Always keep in mind that equipping yourself with the right information on a particular locality will help you big-time in buying an investment property.
Scour Data from Brokerage Firms
You can also get a glimpse of the conditions of the local real estate market by looking at quarterly reports from brokerage firms. Data from brokerage firms can provide you with information on what type of properties are selling, their prices, and how fast they sell.
Brokerage reports such as those are informative, but they solely focus on the past. If you want to look at present data, it’s advisable to check current contracts.
Search Online
Take advantage of the internet and do a simple search on what’s the state of a particular local real estate market. When searching through Google, for instance, you need to be specific with the search terms. Make sure to include the name of the place you want to know about to get specific search results. For example, you can Google “trends in the New York real estate market”.
It may take less time than you think to discover valuable insight. Once the results are generated, scan the results for the things you want to know and start reading. Most real estate agents also use the internet to expand their knowledge about a specific real estate market, so you can also do it yourself.
Related: How to Research Real Estate Markets: The Beginner’s Guide
Get Insights from Various Information Channels
It’s crucial to check out community websites, local news, social media channels, and bloggers or influencers working in a particular locality. Such information outlets can provide you with a different perspective on a specific local real estate market. Just remember that broadening your point of view is essential to know more about a particular local market.
Check Out Estimates from Zillow
Zillow, which is an online real estate database company, can provide you with reports about a local market as well as an estimate or “Zestimate” on how much your property is worth.
Although some users complain that Zestimates are not accurate, such information is helpful to know the conditions of the market based upon the periodic updates to the estimate for a property value.
Of course, it will be hard for a website to determine the exact market value of your house, but it can offer some insight into market mobility and pricing for specific properties or neighborhoods.
Take Note of Market Indicators
If you’re planning to buy a home, ask yourself how long you want to stay in it. For the short-term, it’s advisable to look for a home in a heating market where values are improving. Short-term equity gains have a high chance to outdo appreciation. However, you must understand that the state of a local market goes through a cycle, so only sell when values rise.
On the other hand, if you’re looking to live in the home for the long-term, go for an area with excellent employment rates, low crime, and good schools.
Study Local Market Cycles
It’s very crucial to understand the local market cycles as the market will not always be in its current state. Consumer behavior and economic activity within a specific locality are the contributing factors why market conditions trend up and down. Such factors can, in turn, affect capitalization rates, vacancy rates, rent or selling prices, and more. Your understanding of the market cycles can help you make informed decisions when buying or selling a property.
Related: What Are the 4 Real Estate Cycles?
Look at Local Market Data from Title Companies
Local title companies can be a valuable asset for obtaining local real estate market data. So, if you’re a buyer or seller, you should look for local market reports on recently closed sales and sales trends. In fact, local brokers also search real-time market data from local title companies as they are more detailed and reliable.
Check Out Real Estate Listing Platforms
Every piece of information that you need is just out there, waiting to be searched. For instance, you can check out big listing platforms data, and study what is presently active and pending.
Then, you can go around the area of your interest, and look for any renovations or remodels. Finally, check out if there are new commercial activities or mixed-use developments happening nearby. If there’s a hot economic activity, it means that it’s an excellent idea to invest in real estate properties in that area.
Examine the Local Area
Before making a purchase, it’s crucial to check out the area that sparks your interest. In your search, you might find an excellent street that will suit your needs. You should also look for the top performing agents that can assist you with the purchase.
Takeaway
For sellers and buyers of real estate properties, study the local market to help inform your decisions. Otherwise, it will be hard for you to get the best deal. Learn from the tips mentioned in this article to know better your local real estate market.
This article has been contributed by Robert Tropp.