Interested in understanding the real estate market? Every market has unique trends and patterns that causes the price to increase or decrease. As a real estate agent, it’s critical to watch the market for these trends, and distinguish the fast-sellers from the slow-movers, market history, and community growth in your listing area.
Find the “Fast-Sellers”
Some homes sell instantly, while others stay stagnant on the market for quite some time. Evaluate the recent “quick” homes sales in your area. What caused the quick close? Was it the real estate agent’s marketing efforts? Perhaps the listing price was under market price, creating a high value for homebuyers shopping in the area. Perhaps it is close to the best school in town, or near trendy restaurants and boutique shopping centers.
Identify Which Houses Have Been On the Market the Longest
Along with identifying the fast-sellers, assess which houses have been on the market the longest in your area. Are these homes overpriced? Outdated or in need of repair? A fixer-upper may need to be adjusted to a lower price to attract buyers. Knowing this will give you a clearer indication of how to price your listings according to the market’s demand.
Just as in the stock or retail market, the real estate market can go through a cycles of boom and busts. Real estate markets tend to fluctuate from overvaluation to undervaluation, dependent on home buyer behavior and perception of value, interest rates, community growth, and other market conditions.
Evaluate the community’s future growth. Is this an up and coming town? What type of development projects are currently underway, and are they industrial, commercial, retail, or mainly residential? The communities with booming growth in retail, hospitality, and commercial buildings are likely to see a spike in the real estate market, as it makes the community more desirable to live in.