The real estate market is never static. Keeping up with real estate trends allows you to remain updated about your local real estate market and improves your real estate decisions and investments. Following these trends also allows you to understand market changes, buyer and seller behaviors, and when to sell or purchase a property. Some significant occurrences in the market, such as the crash of Toronto housing market, had significant impacts on the entire market. The following ways can help you learn more about your local real estate dynamics:
1. Check the COMPS
A comparative market analysis is the best way to determine property prices. CMA uses comparative properties or COMPS to predict real estate property prices accurately. Properties should be compared in COMPS only if they have the same features. You should check real estate listing platforms, such as MLS sites, Zillow, and others, for recently listed properties within your neighborhood.
Search for comparable homes in all dimensions, such as the same square footage, same number of bathrooms, condition, backyard size, and other variables that affect property value. If there are no close matches, you’ll need some real estate market knowledge to make slight adjustments. For instance, you can approximate the cost of an extra bedroom or recently upgraded kitchen.
2. Watch Your Neighborhood
You can also stay on top of your local real estate market by watching your neighborhood. Anytime you come across yard signs indicating properties for sale, try becoming neighborly to find out some crucial details. You can learn what potential homeowners look for in properties, how open houses perform, and more.
Watching your neighborhood also makes it easy to evaluate if properties fly off the market or remain stagnant for several months. Learning these basics can help you price and market your home accordingly. You can learn the pricing trends in your local real estate market by comparing prices over some period.
3. Read Local Real Estate Media
Keeping an eye on your local real estate media is another way to get updated on the local market. Reading your city’s market or a paper dedicated to covering the latest news in your local real estate market is beneficial. Blogs are also great, especially for those who live in established cities.
You should compile as much news as possible to grasp what’s happening in the market. For instance, if a new commercial project is coming up in the neighborhood, anticipate an increase in real estate prices in the next few years. If people in your town rely on public transport, the introduction of a new light rail stop or bus route means an increase in property value.
4. Understand the Timing of Your Market
All real estate markets have busy and slow seasons. Most states, including Toronto, have peak seasons starting from July. You can miss out on the best deals and prices for your property by timing your sale poorly.
You should research extensively to get a grasp of your local real estate market. However, note that previous market changes cannot be used as accurate future predictions. Real estate market volatility can change unexpectedly.
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