General Real Estate Investing
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 4 years ago, 03/12/2020
Whats The Best Way To Know Its A Sellers Market Or Buyers?
What are some good ways to analyze whether my area is a good market or a bad one. How do you determine what areas are worth investing?
#3 Managing Your Property Contributor
@Maurice E. Stokes Jr Look at what prices have been doing, how quickly places are selling and if they sell above or below asking.
As for areas to invest, find areas you are familiar with and will give you a good return on your investment. For long term rentals, look at vacancy rates, rental rates and expenses.
@Theresa Harris Thank you, that info helps alot and gives me a point to start my research. I really appreciate the reply.
#5 Medium-Term Rentals Contributor
- Investor
- Youngstown, OH
- 2,398
- Votes |
- 2,901
- Posts
#5 Medium-Term Rentals Contributor
- Investor
- Youngstown, OH
I try to analyze one property a day. I then add it to a spreadsheet so I can track what it's listed for, how many times the price is lowered and how often, and what it ends up selling for.
@Maurice E. Stokes Jr ask a real estate agent! They should be able to show you some stats pretty quickly if they have access to the local mls. Attached below is a screen shot I pulled from my mls in OKC. The 2.4 supply number represents how many months of supply are currently avaliable on the entire MLS. What I've been taught is 6 is equilibrium, higher then 6 is a buyers market, and less then 6 is a sellers market.
We also have the ability to shrink the scope of data to specific cities as long as they are apart of our MLS. Hopefully that helps!
@Nicole Heasley awesome idea, thank you!
@Ralph Justiz wow thank you. I will look into that in my area
@Maurice E. Stokes Jr PRICING, also see how many DOM, days on market, and price reductions. Also are you buying to live in or invest/ rent ? If live in, make a low ball offer, you never know. If renting do not worry about up or down 10 -15% its all about cash flow. As long as you are getting not less the 10% net, who cares. Everything goes back up. Think longer term
Good Luck
#5 Coronavirus Conversation Contributor
- Real Estate Broker
- North Richland Hills, TX
- 607
- Votes |
- 1,016
- Posts
#5 Coronavirus Conversation Contributor
- Real Estate Broker
- North Richland Hills, TX
Originally posted by @Ralph Justiz:
@Maurice E. Stokes Jr ask a real estate agent! They should be able to show you some stats pretty quickly if they have access to the local mls. Attached below is a screen shot I pulled from my mls in OKC. The 2.4 supply number represents how many months of supply are currently avaliable on the entire MLS. What I've been taught is 6 is equilibrium, higher then 6 is a buyers market, and less then 6 is a sellers market.
We also have the ability to shrink the scope of data to specific cities as long as they are apart of our MLS. Hopefully that helps!
Ralph, you beat me to it. 6 months' inventory is normally considered the equilibrium. Less than that = sellers' market, more = buyers' market. I think it's also helpful to look at data trends for sale price as a % of listing price, median price/sq. ft., days on market, closed sales, etc. to gain additional perspective regarding market direction.
I agree with @Chris Soignier & Ralp, knowing the absorption rate for you market is a must. Look at it for the last 12/6/3 months and see if there is a trend. I always read it as 1-4 months is a Seller's Market, 5-7 months is a Balanced Market, and 8-12 months is a Buyer's Market.
Days On Market and List Price/Sales Price Ratio are the other 2 numbers I focus on as well.
