Competent real estate agents know the current market trends. But outstanding agents recognize the emerging trends in real estate. Staying ahead of the curve makes an agent more valuable to clients. Some of the top industry earners detect patterns and potential market changes before they happen. Consider innovative ways to determine trends before the mainstream market acknowledges them.
Review Respected Research Studies
There are many industry-related research studies on the sale, purchase, and rental of homes throughout the country. Keep up with updates from the National Association of REALTORS®, Fannie Mae, Freddie Mac, the Case-Shiller Home Price Index, the Joint Center for Housing Studies of Harvard University, the National Association of Home Buildings Housing Market Index, and construction spending from the United States Census Bureau. Gather statistics for the previous years to watch for patterns. Often historical data is used to predict upcoming real estate market trends.
Check the Local Government Offices
Local government offices also provide updates about the real estate market, housing taxes, construction in the area, and more. Check out the local building department, controller’s office, and HUD office, and the Department of Labor. Look for signs of expansion, such as increased spending for new construction, which could indicate a housing inventory shortage in the neighborhood. Join the local chamber of commerce to see what other business owners are talking about when it comes to real estate, job availability, and other key economic factors. New businesses bring more jobs. However, when companies leave the area, homeowners may start selling and relocating.
Do Your Reading Online
Agents who wait for paper publications fall behind on the trends. The hottest updates hit the Internet long before they go to print. Subscribe to industry blogs, including the top agents in the region. Connect with movers and shakers on social media. Watch firsthand as the market trends start to change. Take at least a couple of hours every week to read updates on blogs, Facebook, LinkedIn and other social media accounts. Connect with other local agents. Be interactive by asking simple questions and encouraging them to do the same. Take surveys on social media to gather your research for interpretation of emerging trends in real estate.
Comparative Market Analysis
Many industry organizations provide a wealth of data about local housing prices, the number of sales, and more. Often updates are released every month. Keeping up with them helps agents understand the direction of the market. And keep track of in-office comparative market analysis to spot trends. Compare home sales and prices to the same time the previous year. Consider whether they rose or fell and the reasons why. Patterns determine pricing and other factors. For example, a housing inventory shortage drives up prices.
Let Google Help
Savvy agents use Google to help them determine what’s happening in real estate. Set up Google Alerts to get the latest industry news as it happens. Search Google trends to find out what people are looking for and determine why they want to find it. Check out Google Analytics to find out the most popular searches in the industry. People go online to get information and answers. Studying this data helps agents understand what clients need and how to help them – now in and in the months to come.
Keep Track of the Economy and News
A real estate agent is a business professional. To thrive in the industry, professionals must keep track of the economy. Turn to experts online and in the news to find out the state of the economy each day. Tune into the trends, such as unemployment or when people have more disposable income. Economic conditions impact the real estate market. Other news also matters, such as population shifts, people moving into specific regions, and areas where business is booming. Agents can predict local trends by these factors. For example, if a new corporation opens in the area, people will want housing to live nearby.
Get Out of the Office
Real estate agents spend time on the road with clients then return to their offices. Then time is spent on marketing, paperwork, research, and phone calls. Agents need to get out of the office and communicate. Step outside your door to chat with co-workers and share experience. Network with industry professionals, such as mortgage bankers, attorneys, builders, and others. Find out their opinions on the state of the local economy and real estate market. Take mental notes during your interactions to form your own opinion. Stay in touch with people, so you understand their thoughts, feelings, motivations, and actions.
Agents who watch emerging trends in real estate offer a higher level of services to their clients. Well-informed agents have data to back up their findings. This data can be used to advise clients about timing, pricing, and other significant factors. Plus, agents who spot trends first become industry authorities. A higher level of expertise means more sales and referrals.