With the real estate market constantly fluctuating, real estate professionals need to keep a finger on the pulse of market trends. Home values, buyer demand and mortgage rates are just a few of the critical areas realtors should constantly focus on. How they stay abreast of all the relevant information determines how successful they are in coming up with strategies for buyers and sellers.
Following real estate market trends can allow you to understand buyer and seller behaviors and when the optimal times to sell properties are. If you want to keep up with the latest market trends in real estate, follow the advice of these 15 Forbes Real Estate Council members.
1. Track Real-Time Market Data
It’s very important to be connected with some form of real-time data in a market that you are interested in. For the markets that we invest in, we track supply and demand fundamentals on a quarterly basis. We also track sale transactions to keep a pulse on the pricing in the market. – Mark Tiefel, Capital Equity Group, Inc.
2. Listen To Your Clients
For me, the best way to stay up to date on market trends is to actively participate in the market. Listening to my clients and applying the nuances of each transaction to future deals may seem simple, but they ripple out to create larger changes in how the market behaves. – Jennifer Anderson, Anderson Coastal Group
3. Be A Lifelong Learner
Be a lifelong learner and read often. Read different things, not just those in your area of interest. This will allow you to gain an understanding of things and how they may relate to a client’s situation. It can also allow you to develop new relationships by integrating new things into your conversations. – Michael J. Polk, Polk Properties / Matrix Properties
4. Subscribe To News Publications
Subscribe to periodicals such as BOMA, CIRE or Forbes RE. Determine whether recent trends in the market are cyclical or secular in nature. Feel free to ride the waves of cyclical trends, but make sure you don’t get caught in the midst of a secular tsunami. – Brian Spear, Sunrise Capital Investors
5. Track Local And Global News
Information is the key to tracking real estate trends on both a macro and micro level. As real estate agents, we need to stay abreast of both hyper-local and global news to keep our clients ahead of market fluctuations. Keep an eye on plans for new developments in our neighborhoods, track consumer confidence indicators and the 10-year Treasury yield as a benchmark that guides interest rates. – Tara Hotchkis, Compass
6. Observe High-Volatility Markets
Monitor high volatility markets because they are a good indicator of what the future holds for the broader market. For example, in Southern California, prices of homes in speculative markets like Inglewood or in “boom or bust” markets like Riverside tend to go up or down faster than in more established cities like Long Beach or Pasadena. – Ron Costa, The Eighty Two Group
7. Gather Feedback From Clients
It sounds almost too simple, but I try to make sure that every single interaction has a feedback loop. Oftentimes it’s quantitative feedback, so when that’s all we have, I’ll deliberately look for opportunities to listen directly to people. – Clark Twiddy, Twiddy & Company
8. Strengthen Your Power Team
Your success in real estate is contingent on the strength of your real estate “power team,” which typically comprises a realtor, wholesaler, property inspector, contractor, property manager and lender. Ensuring you’re in close contact with your power team is the best way to get granular information on trends and market pulses. – Saurabh Shah, InstaLend
9. Network With Other Professionals In The Industry
I stay in communication with others in the industry, including mortgage insurance agents, title agents and other realtors. I’ll periodically ask them if they’re noticing any changes in the market or seeing new trends. Also, I study market reports from my local MLS and other local and national sources. – Chris Bounds, Invested Agents
10. Read Newsletters And Reports From Economists
Real estate offers a plethora of economic newsletters and reports that are free, including ones from the National Association of Realtors, National Association of Home Builders and insurance entities, like Nationwide Insurance. Knowing and understanding the trends is something leading economists do. Learn from them as they are the experts—it’s the best way to get ahead of the curve on what’s next. – Kevin Hawkins, WAV Group, Inc.
11. Establish Local Connections
Local connections and a mastermind group are the keys to tracking trends in the marketplace. The most successful real estate professionals are now not looking at the news—they are actually ahead of the news. For example, a new development can change the environment of a neighborhood entirely. It is important to be aware of such changes so that clients can be advised before the fact. – Marco Del Zotto, LIV | Sotheby’s International Realty – Breckenridge CO
12. Watch For ‘Coming Soon’ Signs
Keep your eyes peeled for “coming soon” signs that pop-up around your real estate farming area and reach out to those agents to learn more about the properties coming on the market. This type of information will give you the advantage of becoming more of an expert in those areas, as well as the ability to better predict price fluctuations. – Mor Zucker, Team Denver Homes – RE/MAX Professionals
13. Review Key Data
I track trends and fluxes in markets based on interest rates, pricing, inventory and days on the market. All of these areas in tandem tell a market tale that can allow agents to help sellers and buyers decide the best strategies for optimum results. – Cheryl Abrams, Re/Max United Real Estate
14. Set Up Google Alerts
Setting up targeted Google Alerts. With key terms in your particular areas of expertise or interest, this is an easy way to let someone else do the daily scouting for fresh intelligence on your behalf. – Nathan Headrick, BluWater
15. Keep An Eye On Comps
Knowledge is powerful. Keep an eye on comps in the area. Know what everything is selling for and who’s buying what. Especially with iBuyers in most markets, it’s important to keep a pulse on any changing trends. – Mike Hambright, FlipNerd.com