Homebuyers must determine where to buy as well as what to buy when considering a real estate purchase. Evaluating the real estate market in your area may be difficult due to constant fluctuation. However, a recent article by Mickkie Mills in RISMedia, Tips to Assess and Evaluate the Real Estate Market in Your Area, offers some tips that will help make your analysis much easier.
Observe the Pricing Trends – Make note of the price trends in your local real estate market, and compare them with recent and past trends. This will enable you to analyze the growth and possible expansion of the market in the future. Seeing how the prices of residential and commercial properties vary over a number of years will help you determine the most promising area for you.
Identify the Catalysts – After reviewing the price trends and properties available in your selected area, look into the factors that determine different price points in the market. Real estate development depends on several economic elements. Infrastructure is a major factor that drives growth – this includes roads, highways, schools, hospitals and other public facilities, which almost always brings a surge in market growth. Additionally, local regulations, taxes, and interest rates are important elements to consider.
Assess the Sales and Purchases – Observe the total sales and purchases to determine if your area is a buyers’ or sellers’ market. The number of “Days on the Market” is a strong indicator of which way the market is headed.
Determine the Types of Property Available – You need a realistic knowledge of the properties available in the local market in order to ascertain the best property for your needs and desires. The choices available may range from single-family home, to a townhouse with close neighbors, to a condominium in a metropolitan high rise. This analysis will provide you with the knowledge of your local market.
Compare with Surrounding Area – Aside from a strong knowledge of your local real estate market, it is vital that you are aware of the real estate market and trends in adjoining areas. Learn what the pace is for infrastructure development and public service facilities that are or will become available. Whether you are seeking a primary residence or looking for investment property, learn as much as you can to assess and evaluate the area.