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How to research real estate potential in a given area? |
What is the best way to research real estate price trend in different states and cities? Are there any specialized web site which provide this sort of data? The easy way to learn about a local real-estate market is talk to a good real-estate agent. But you shouldn't stop there. There are a host of resources available on the Internet and elsewhere that can help you gather data about sales, construction and price trends in your area. For example, you'll want to do as much digging as possible on price appreciation. For that, you should start with three web sites, each of which provides a different set of local price data. The first is the home-price web page for the Office of Federal Housing Enterprise Oversight, the federal regulator of Fannie Mae and Freddie Mac. OFHEO's data are among the most-respected in the country because they track "repeat sales," or changes in price for specific homes that have sold in recent years. Other groups calculate the data differently, averaging together the prices for all the homes that have sold in an area, and then comparing that result to past periods. This kind of analysis, while useful, can be skewed if buyers change their tastes. For example, if a large number of people unexpectedly buy luxury homes in an area, it could push the average price for that area far higher even as other homes aren't appreciating, providing a false impression of the market. The downside of the OFHEO data is that while they tell you how much home prices have risen in percentage terms in a particular city, they don鈥檛 tell you the actual average or median price there. For that, some investors turn to the price data accumulated by the National Association of Realtors on its economic research web page. That site can tell you, for example, that the median sales price of a single-family home in Atlanta is now $157,500. The site also tells you how much prices have risen in percentage terms, but many economists prefer the OFHEO data to gauge such underlying trends of a local housing market. A final web site worth consulting when it comes to home prices is that of private consulting firm Fiserv CSW Inc. This firm's information is based on extensive modeling programs developed by two university economists. While Fiserv CSW makes no promises that its forecasts will prove to be exactly accurate, their projections have a pretty good track record and can at least give you an idea of where prices are headed in some areas. There are other ways to research price trends. One is to log on to your local appraisal district's web site, or visit your county courthouse, to check up on prices for specific homes in your neighborhood. You might also try searching a local real-estate agent's web site to check on new listings in the area, which will include the listed price. If you want to drill down a little deeper or collect data on other subjects in your area, you might want to get in touch with your city's planning department, the city-manager's office, or the local department of economic development. Planning departments and city manager offices can help you track down data on building permits and local zoning rules that play a big role in determining the value of specific tracts of real estate. Economic-development groups often keep statistical profiles of their respective cities, providing useful information on demographic and employment trends that can help you determine whether it makes sense to invest in the city or look elsewhere. You can also log on to www.census.gov for more demographic and home-construction data; for example, the Census Bureau releases valuable monthly reports on new-home construction and building permits, which include data for states and some metropolitan areas. All of these resources can't serve as a substitute for getting out and talking to real-estate agents and looking at houses, of course. Data collected by outfits like the National Association of Realtors, or even local governments, can't capture what's driving home prices on specific streets or neighborhoods in a given town. If you're serious about investing in real estate, you'll want to meet with as many real-estate agents as possible. Among the other questions you might ask: How big is the local inventory of new and existing homes, measured by the number of months it would take to sell them all at the current sales pace? How long, on average, are properties staying on the market? Is the average sales time increasing or decreasing? These are important metrics for judging a local market. You'll also want to talk to other real-estate investors in your area. One way to track them down is by joining a local real-estate investment club; many can be found at www.mrlandlord.com or www.nationalreia.com. Mrlandlord.com also offers a chat room where investors can talk with each other about local trends. remax.com Real Estate Potential, to me, is determined on the old Supply & Demand economics principle. Which to me is JOBS. I'd research the local Business Journal for the area you are looking at. For price trends, contact a local REALTOR. A place you might be able to find a vast of information is http://localism.com Austin Realtor/Investor http://activerain.com/blogs/robertbrees... |
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