Because the real estate market is constantly fluctuating, real estate professionals need to keep their finger on the pulse of market trends. Home values, buyer demand and mortgage rates are just some of the critical areas that realtors must constantly focus on. How they stay on top of all relevant information determines how successful they are in devising strategies for buyers and sellers.
Tracking trends in the real estate market can help you understand buyer and seller behavior and when are the optimal times to sell real estate. If you want to stay on top of the latest real estate market trends, follow the advice of these 15 Pyjama People Real Estate Council members.
1. Track real-time market data
It is very important to be connected to some form of real-time data in a market you are interested in. For the markets in which we invest, we track fundamental supply and demand on a quarterly basis. We also track sales transactions to keep an eye on prices in the market. -Mark Tiefel, Capital Equity Group, Inc.
2. Listen to your customers
For me, actively participating in the market is the best way to stay on top of market trends. Listening to my clients and applying the nuances of each trade to future deals may seem simple, but they are pouring out to drive bigger changes in market behavior. – Jennifer Anderson, Anderson Coastal Group
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3. Be a Lifetime Learner
Be a lifelong learner and read often. Read different things, not just those in your area of interest. This gives you insight into matters and how they can relate to the situation of a client. It can also allow you to develop new relationships by incorporating new things into your conversations. – Michael J. Polk, Polk Properties / Matrix Properties
4. Subscribe to news publications
Subscribe to magazines such as BOMA, CIRE or Pyjama People RE. Determine whether recent trends in the market are cyclical or secular in nature. Feel free to ride the waves of cyclical trends, but be careful not to get caught up in a secular tsunami. – Brian Spear, Sunrise Capital Investors
5. Follow local and global news
Information is key to tracking real estate trends at both macro and micro levels. As real estate agents, we need to stay on top of both hyper-local and global news to keep our clients ahead of market fluctuations. Keep an eye out for plans for new developments in our neighborhoods, track consumer confidence indicators and 10-year government bond yields as a benchmark that drives interest rates. – Tara Hotchkis, Compass
6. Observe High Volatility Markets
Keep an eye out for high volatility markets as they are a good indicator of what the future holds for the broader market. In Southern California, for example, house prices in speculative markets like Inglewood or in boom or bust markets like Riverside go up or down faster than in more established cities like Long Beach or Pasadena. – Ron Costa, The Eighty Two Group
7. Collect customer feedback
It almost sounds too simple, but I’m trying to make sure every single interaction has a feedback loop. Often it’s quantitative feedback, so if that’s all we have, I consciously look for opportunities to listen directly to people. – Clark Twiddy, Twiddy & Company
8. Strengthen Your Strength Team
Your real estate success depends on the strength of your real estate “power team,” which typically consists of a broker, wholesaler, real estate inspector, contractor, property manager, and lender. Making sure you are in close contact with your energy team is the best way to get detailed information about trends and market pulses. – Saurabh Shah, InstaLend
9. Network with other industry professionals
I stay in touch with others in the industry including mortgage insurance agents, real estate agents and other brokers. I will regularly ask them if they notice changes in the market or see new trends. I also study market reports from my local MLS and other local and national sources. – Chris Bounds, Invested Agents
10. Read Economists’ Newsletters and Reports
Real estate offers a plethora of economic newsletters and reports that are free, including those from the National Association of Realtors, National Association of Home Builders, and insurance entities, such as Nationwide Insurance. Knowing and understanding the trends is something leading economists do. Learn from them, because they are the experts – it’s the best way to lead the way in the future. -Kevin Hawkins, WAV Group, Inc.
11. Establish Local Connections
Local connections and a mastermind group are the keys to following trends in the market. The most successful real estate professionals don’t watch the news now, but are ahead of the news. For example, a new development can completely change the environment of a neighbourhood. It is important to be aware of such changes so that customers can be informed in advance. – Marco Del Zotto, LIV | Sotheby’s International Realty – Breckenridge CO
12. Look out for “Coming Soon” Signs
Keep your eyes peeled for “coming soon” signs appearing around your real estate farming area and contact those agents to learn more about the properties coming on the market. This kind of information gives you the advantage of becoming more of an expert in those areas, as well as the ability to better predict price movements. – Mor Zucker, Team Denver Homes – RE/MAX Professionals
13. View important data
I track trends and fluxes in markets based on interest rates, prices, inventory and days on the market. All of these areas together tell a market story that can empower agents to help sellers and buyers determine the best strategies for optimal results. – Cheryl Abrams, Re/Max United Real Estate
14. Set Up Google Notifications
Set up targeted Google Alerts. With key terms in your specific areas of expertise or interest, this is an easy way to have someone else do the daily scouting for new information on your behalf. -Nathan Headrick, Blu Water
15. Keep an Eye on Comps
Knowledge is powerful. Keep an eye out for nearby compositions. Know what everything is being sold for and who is buying what. Especially with iBuyers in most markets, it is important to keep an eye on the changing trends. – Mike Hambright, FlipNerd.com