Market Analysis

[Michael Smith]

Hey BP,

I'm looking at the possibility of investing in a new market in a different state (we have family there, and might be moving in a few years). I'm curious, what tools/websites/resources have you found helpful in analyzing important economic factors in different markets?

For example, how can I tell if the population and jobs are trending up or down? And how can I find out how diverse the local economy is by sector (finance, manufacturing, health care, etc)? What else should I be looking for?

Thanks!

[Gerald Harris]

Do this

Contact 3 to 5 real estate professionals and 3 to 5  management companies in the area

This often times is your best source of information on the activity going on in that particular area.   Make sure when you contact these people they are "actively" doing deals in the are right now.    They will be able answer most of the question you have in that particular area.    Don't just go with the average agent in the area, find the "Superstar" in the office.    Get to know them.   You just may need them in the area.    As far as management companies, they will let you know what rental areas are good areas, with job growth and which are not.  

As for as understanding job growth, contact the local city/housing and employment departments, see if they can get you some info to go by.   

Also:  if you go to the area do this

1.  Go to the city permits department

2.  Ask to see the number of commercial permits that have been pulled in the last 12 to 24 month.

3.  The reason i say "commercial permits" is job creation.   Typically those warehouses, hospitals, department stores that are getting ready to break grow are going to need employees.   It will also give you an indication of real estate demand in the area.  with this will come an increased need for rentals and buying activity.   

This is should be enough to get you going.

Good Luck to you!