Education and news for smart DIY landlords!
Staying updated about the latest trends of a real estate market is essential as an investor if you want your investment decisions to pay off. But getting trends from one source isn’t enough. You cannot rely on the words of other real estate professionals or what the economic news anchor says on the screen.
You must also the opinions of other sources as well as research multiple information outlets to stack the odds in your favor. Find out more on how to stay on top of real estate trends by reading on.
Real estate trends are influenced by both global and local events. A scarcity of construction materials or a sudden population boom can cause housing prices to rise or fall. It’s important to watch the news whenever you’re free so you’ll predict housing market changes. Better yet, use a DVR to watch a recap of any news you’ve missed.
In addition to watching the news, you can read newsletters and reports made by economists. They are free and reliable sources of information. High-performing real estate investors subscribe for updates from the National Association of Realtors and the National Association of Home Builders to know what the current and next housing market trends are.
Don’t just settle for self-study. Establish a connection with other experts in the area of where you’re investing in. You can start by knowing the local real estate investment groups or clubs by talking to a realtor or agent.
Then, ask the agent or realtor to provide you with an invitation for joining a meeting. Once you’re in, learn as much as you can, make friends, trade secrets, and be a member of the club so the next time there’s something new in the market, you’ll hear about it while it’s fresh.
Predictive analytics is a strategy that predicts future real estate market trends by analyzing current past events through machine learning and data mining. For example, if you want to know if the local housing market will be on the buyer’s or seller’s side next month, you must do a predictive analysis about the rate families are moving in and out of neighborhoods.
Just because real estate markets differ in location doesn’t mean that they have no degree of influence over a broader market. For example, the “boom or bust” markets of Westminster, Aurora, and Lakewood altogether could suggest that housing prices in Denver would rise or fall quickly.
By observing volatile markets, you can make accurate assumptions of future housing prices in a broader area without taking too much time for research.
For a small housing market, the best way to stay updated is to keep an eye on your neighborhood, especially on properties similar to yours. You must know how much each house is selling for and who’s buying it.
You might hear that a house buyer sent a good offer to your neighbor but they declined it. You can then use that opportunity to find a buyer with a much better offer now that you know houses like yours are in demand.
To stay updated on the trends in a broader housing market, you’ll need to track key data such as house pricing, mortgage interest rates, housing supply, and how long these houses have stayed in the market. This is a good strategy to help you find out which house types sell fast, are profitable, in-demand, and which ones are oversupplied, unpopular, and non-profitable.
After you’ve studied the information you’ve taken from different sources, find the common data presented. For example, if all the information points towards a market crash, then a market crash would be likely to occur. It would be best to hold your investment in the meantime.
However, if most of the data points toward profit and you want to take the risk, then create a solid real estate investment plan and execute it.
Need more information about real estate? Read these blog posts!