Analyzing Market Data For Reliable Conclusions & Predictions

By
Property Manager 166201 & 49406

THE BIG PICTURE:  Analyzing Market Data to arrive at conclusions & predictions

Residential real estate markets do not exist by themselves.  They exist as a segment of a region’s overall economy.  This is why any worthwhile analysis of a real estate market is really just an analysis of the regional economy, with a focus on the real estate market.  Anything less, is just crap…worthless to a savvy and intelligent investor. 

In other words, trying to interpret and predict real estate market trends without a full understanding of local, regional, national and worldwide economic issues and trends, will give you terrible results, pushing your investment dollars in the wrong direction and cost you dearly! It's a sad commentary on my part, but in my experience as a broker, manager and teacher, the average real estate agent (at least in my market) doesn’t understand, follow or even care about anything more than the published real estate statistics, and their analyses and predictions are rarely reliable or accurate. 

When I was a kid and young man, my father used to tell me that in order to be successful, I needed to know and see the big picture.  That meant reading the newspaper every day, paying close attention to how the stories evolved and interacted over time.  This is true for local, regional, national & even worldwide stories and data.  He would say that a good real estate agent knows EVERYTHING about a community, not just the real estate stuff.  He taught me that gathering & reporting data is easy and anyone can do it, but the real professional talent and skill lay in always trying to answer the question ‘WHY’. 

  • Why did the 3rd quarter’s appreciation drop from 6-4%? 
  • Why did this old, rundown neighborhood suddenly become popular and gentrified? 
  • Why did this property sell for ‘X’, and the neighboring one for ‘Y’? 
  • Why, Why, WHY!!!

 

Why?  When you know the 'why' of an event or statistic, you can then push that reasoning forward to more accurately predict what will happen next, what will happen down the road and what will happen in the long term. For an investor of any kind, knowing what's coming down the road is the key to maximizing growth and stability. 

 

THE MORE YOU KNOW, THE BETTER YOU’LL GROW!

-or-

He who knows the future, owns the future!

 

Let me tell you WHY you should work with me to reach your real estate investment goals.

Let me show  you WHY my advice and analysis of the Las Vegas regional real estate market is worth more than what you’ve been getting from your current advisor.

Let me explain WHY you should let me help you invest in our market, wisely and in accordance with your goals.

 

Comments (1)

Sham Reddy CRS
H E R Realty, Dayton, OH - Dayton, OH
CRS

The more knowledge and updated information you have on the subject, the better equipped you are to compete with those who shoot it from the him and hope no one notices

Feb 28, 2015 07:56 PM