Real estate market analysis involves collecting statistical data on recent trends in the real estate market, such as average selling prices and foreclosure levels, and defining parameters such as geographic boundaries and time scale. Governments produce reports on price trends, while individuals can manually collect data on recent home sales or gather information from real estate agents and local newspapers. Demographic changes can be discovered through census records or door-to-door visits. A report covering housing-related activities in a specific area over a specific time period must be produced, with subsequent reports covering the same region and duration for meaningful analysis of trends.
A real estate market analysis is a study that contains statistical data related to the real estate market. Typically, an analysis will include details of recent trends in the real estate market, such as average selling prices, foreclosure levels, and the areas in which most real estate selling activity has taken place. To produce a useful report, the person conducting the analysis must define parameters that include geographic boundaries and the time scale of the study.
Regional and national governments often produce monthly or quarterly reports that detail price trends in the real estate market. These reports include average property prices and these numbers are typically compared to previous reports so that trends such as price increases or decreases can be measured. In the absence of such information, someone trying to conduct a real estate market analysis could manually collect data on recent home sales at the local courthouse. Documents such as warranty agreements are generally available to the public and often include sales prices and transaction dates. Analysts can also gather information about recent sales from real estate agents.
Details of events like foreclosures are usually listed in local newspapers and magazines. Also, foreclosures involve default judgments and records of such judgments are usually kept on file at the local courthouse. In addition to gathering foreclosure information for a real estate market analysis, an individual can also cross-reference the addresses of foreclosed homes with local property tax records, which include descriptions of the property parcels. This information can be used to create a report showing the types of properties that closed in a given time period.
Someone conducting a real estate market analysis may want to find out about demographic changes in a particular neighborhood or region. In many cases, local governments conduct censuses and copies of these completed reports are often made available to the public. By reviewing census records, an analyst can discover information such as the age, gender, and ethnicity of people who are housed in specific regions. In the absence of census information, an individual can collect this data by making door-to-door visits to homes in the neighborhood.
After collecting data related to home sales, foreclosures, demographic information, and other relevant information, the person compiling the real estate market analysis must produce a report that covers housing-related activities in a specific area over a specific time period. . For the report to be meaningful, the analyst must create subsequent reports that cover time periods of the same duration as the first report and include housing information pertaining to the same region. Over time, trends in the real estate market can be easily tracked as analysts can compare reports spanning different time periods.
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