Tips to Assess and Evaluate the Real Estate Market in Your Area

Tips to Assess and Evaluate the Real Estate Market in Your Area

The real estate industry constantly stays in a dynamic state and undergoes fluctuation throughout the year. Making an assessment, evaluation and forecast of your local real estate market might be a tedious task, due to the ongoing market fluctuations. Here are some essential tips to make a smart analysis of your local real estate market.

Observe the Pricing Trends
A fundamental approach to gain primary knowledge about your local real estate market is by observing the price trends. Acquire an accurate and firsthand knowledge about the current price trends and compare them with the price trends of the past. This will help you analyze the growth and expansion of the market in the recent decades and enable you to make an accurate forecast of the future. Note the varying degrees of prices of residential, commercial and agricultural property located in various areas and sectors within the market. This will help you get an insight into the highs and lows of the markets as well as the opportunities.

Identify the Catalysts
Once you have observed the varying price trends of different areas and the types of property available within your market, you are in a better position to look into the factors that influence the pricing fluctuation in the market. Real estate thrives on certain elements, catalysts, and macro and micro economic factors that steer the growth, development, and expansion of the market. Infrastructural development such as roads, bridges, schools, hospitals and other public facilities tend to bring an instant upsurge of market growth. Aside from that, local regulatory policies, state and regional economy and tax and interest rates, as well as market demographics, play key roles in driving a real estate market.

Assess the Sales and Purchase
Keep a check on sales and purchases to analyze if your locale is currently a buyer’s or seller’s market. Assess the number of houses and other property sold on a regular basis. The DoM, or Days on Market, is an effective tool to analyze demand and evaluate the market’s capacity to deliver. Moreover, this analysis will also help figure the buying trends of the future.

Find Out the Types of Property Available in Your Market
Without sound, realistic and accurate knowledge about the types of property available in the local market, you cannot develop an accurate perspective of your real estate industry. Assess the property as per its type and category, such as residential, commercial or agricultural. (These main categories are further classified into secondary and tertiary classes.)

Compare With Suburbs and Vicinities
It is essential to keep a check on the market state and price trends in the outskirts and adjoining vicinities. Find out the pace of infrastructural development and the eminent landmarks and public service amenities available in the outskirts and if they are likely to influence your market in the future.

Whether you are an established real estate enterprise or are planning to venture into your local real estate industry, you need to hone your business strategy and service designs if you want to excel. Automation is the key, and by incorporating smart software, systems, applications and securing them using remote monitoring services, you can efficiently optimize your performance and get an edge over your competitors in the market.

This article is intended for informational purposes only and should not be construed as professional advice. The opinions expressed in this article are those of the author and do not necessarily reflect the position of RISMedia.

For the latest real estate news and trends, bookmark RISMedia.com.

Tips to Assess and Evaluate the Real Estate Market in Your Area

How Fast Can You Save for a Down Payment?

Saving for a down payment is often the biggest hurdle for a first-time homebuyer. Depending on where you live, median income, median rents, and home prices all vary. So, we set out to find out how long it would take you to save for a down payment in each state.

Using data from the United States Census Bureau and Zillow, we determined how long it would take, nationwide, for a first-time buyer to save enough money for a down payment on their dream home. There is a long-standing ‘rule’ that a household should not pay more than 28% of their income on their monthly housing expense.

By determining the percentage of income spent renting a 2-bedroom apartment in each state, and the amount needed for a 10% down payment, we were able to establish how long (in years) it would take for an average resident to save enough money to buy a home of their own.

According to the data, residents in Iowa can save for a down payment the quickest in just under 2 years (1.99). Below is a map created using the data for each state:

How Fast Can You Save for a Down Payment? | Simplifying The Market

What if you only needed to save 3%?

What if you were able to take advantage of one of Freddie Mac’s or Fannie Mae’s 3% down programs? Suddenly, saving for a down payment no longer takes 5 or 10 years, but becomes attainable in a year or two in many states as shown in the map below.

How Fast Can You Save for a Down Payment? | Simplifying The Market

Bottom Line

Whether you have just started to save for a down payment, or have been saving for years, you may be closer to your dream home than you think! Let’s meet up so I can help you evaluate your ability to buy today.

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Tips to Assess and Evaluate the Real Estate Market in Your Area

Measuring Your Ability to Achieve the American Dream

Forbes.com recently released the results of their new American Dream Index, in which they measure “the prosperity of the middle class, and…examine which states best support the American Dream.”

The monthly index measures several different economic factors, including goods-producing employment, personal and commercial bankruptcies, building permits, startup activity, unemployment insurance claims, labor force participation, and layoffs.

The national index score was rounded out to 100 in January and saw a modest jump to 100.5 in February.

Alaska represented the lowest score on the index at 80.7, due mostly to the recent collapse in oil prices. Nevada came in with the highest score at 108.8, boosted by big gains in goods-producing jobs and new construction activity. The full results can be seen in the map below.

Measuring Your Ability to Achieve the American Dream | Simplifying The Market

Forbes Senior Editor Kurt Badenhausen explained why many states saw a boost in the index last month:

“[B]usinesses are hiring in part in anticipation of tax cuts and less regulation… Many areas of the country have experienced strong upticks in employment and construction, as well as declines in unemployment claims since the start of the year.”

Bottom Line

The American Dream, for many, includes being able to own a home of his or her own. With the economy improving in many areas of the country, that dream can finally become a reality.

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Thinking of Selling? Now Is the Time to Act

Thinking of Selling? Now Is the Time to Act

If you thought about selling your house this year, now may be the time to do it. The inventory of homes for sale is well below historic norms and buyer demand is skyrocketing. We were still in high school when we learned the concept of supply and demand: the best time to sell something is when supply of that item is low and demand for that item is high. That defines today’s real estate market.

Jonathan Smoke, Chief Economist at realtor.com, revealed in a recent article that:

“The biggest challenge to buyers this spring will be simply finding a home to buy and getting it successfully under contract. That’s because the supply of homes for sale is at an all-time low, and yet demand is strong and getting stronger.”

Smoke goes on to say:

“We started the year with the lowest inventory of homes available for sale that we’ve ever seen on realtor.com. While we did see inventory grow 2% in February, total inventory was down 11% over last year.”

In this type of market, a seller may hold a major negotiating advantage when it comes to price and other aspects of the real estate transaction including the inspection, appraisal and financing contingencies.

Bottom Line

As a potential seller, you are in the driver’s seat right now. It might be time to hit the gas.

 

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