Success in the real estate industry requires a fine understanding of the market conditions. Too often, Realtors focus on anecdotal data or react to fluctuating market conditions rather than immerse themselves in the rich statistical data available to them. From quarterly house price movements to annual rental trends, understanding crucial real estate market statistics can provide indispensable insights – determining whether you go from being a good Realtor to a brilliant one.
Diving Deeper – Understanding the Real Estate Market through Statistics
Embracing the use real estate market statistics involves recognizing the industry as an entity whose heartbeat can be ascertained, rhythm discerned and tempo predicted.
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A crucial area of consideration is the Housing Price Index (HPI). The HPI provides a comprehensive and standardized measure of the price change in residential housing markets. Similar to the Consumer Price Index that measures price changes in consumer goods, HPI reflects changes in residential property markets over time. The index excavates data beyond mere average house prices, painting a detailed picture of how the markets are truly performing.
For example, stats published by Case-Shiller’s 20-City Composite Home Price Index showed a 19.1% annual gain booked for its indices as of June 2021, compared to 17.1% annual gain registered in May.
Also, understanding existing home sales data presents another integral part of the puzzle. This data reveals a clear snapshot of the number of previously constructed homes, condominiums, and co-ops sold over a specified time and area. Various sources release these statistics, wherein The National Association of Realtors furnish monthly furnishes that are worth checking out.
Explaining further, their database showed that 5.99 million homes were sold in July 2021, reflecting a slight uptick from the preceding months but representing an August fall of 2%. This kind of information provides important context to those working long into the picture – breaking it down synergistically, you’ll have a segmented insight into the technically inclined market.
Undeniably, new housing starts serve as another often overlooked statistic. New housing starts signify the number of new residential construction projects that begin during a specific month or yearly quarter devoid of apartments or condominiums. Importantly these figures provide clues about future housing supplies.
Per the U.S. Census Bureau, August housing starts stood at 1.62 million, with a variance of plus or minus 8.8%. This stands significant for industry professionals as it and portends future supply patterns, giving an informed perspective needed to trend right.
As these data form crucial cornerstones in strategically pricing, listing selling, and closing real estate transactions, accessing real-time updates becomes integral. Paving the path for the next big factor you should always consider.