If you are planning to sell or buy a home, Homes.coms website has tools that will help you stay on top of hyper-local trends. By tracking trends in your hyper-local market (neighborhood or community), you can anticipate price changes before they happen.
National vs. Hyper-local
All real estate is local is a popular maxim and its largely true. Ironically, its much easier for real estate consumers to follow national or metro-wide price trends than trends in the very local markets that matter most to buyers and sellers. Economic conditions such as local employment and income levels, natural disasters like floods or wind storms, and local new home construction that can vary greatly by locality. That said, some national events, especially changes in mortgage interest rates, affect everyone. So-called national prices (unlike stocks or commodities, homes are sold on a local, not national, level) are much easier to cover than the neighborhood, or hyper-local markets where houses are bought and sold.
Trends Are the Key
Trends in prices or values may be more important than specific prices. Sellers try to list their homes at a price that anticipates market trends during the two to three-month period that they will be on the market. Buyers are concerned about the much longer window in time. They want the price of their new purchase to appreciate at a healthy pace for a long time after they close. Thus, making an offer in a neighborhood where prices have just increased could be very beneficial to a buyer if it looks as though the market will continue to rise. Likewise, in a local market where prices have recently leveled or declined, buyers might want to hold off to see if the market is softening and they might get a better deal by waiting a few months.
Individual homes usually change price direction (from appreciation to depreciation or vice versa) very slowly, like an ocean liner changing course. If there is no significant change in the price patterns of nearby properties, a homes value may continue in the same direction for years. The reason is simple. Home values are based on the sales of a limited number of similar, nearby properties while metro and national markets reflect thousands of transactions each month.
The period of time that a home is listed before the seller accepts a bid, expressed as time on market, is another good indication of an important local market trend. The less time homes spend on the market, the stronger the demand.
Here are four ways Homes.com can help you to monitor your hyper-local market trends:
1. Track hyper-local prices
By finding and following price trends of several homes similar to the one you want to buy, you can use Homes.com to track local listing price trends at the neighborhood level. In Home Search, enter the address of a listing of a home that you would like to monitor. Use the filters in your search function to find at least three listings that have the same number of beds and baths and roughly the […]
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