How to Know the Market Before You Invite a Realtor Over 

How do you know if someone is exaggerating or telling the truth about the housing market? First, get educated. Simple steps to do this include knowing what to look for, finding the latest data, and interpreting market trends. Understanding the real estate market is not Hocus Pocus, it’s common sense. 

You can determine whether it’s a seller’s or buyer’s market depending on how much supply and demand there is. If there are more houses listed on the market than there are being purchased, this is a buyer’s market. When there is a low inventory of houses and a high purchase rate, then this is a seller’s market. The housing market is more favorable to the seller or buyer based on the dynamics between supply and demand.

Understanding the fundamentals of the real estate market, such as supply and demand, will help you set realistic expectations. This information will be your guide to understanding the housing market.

What You Should Pay Attention To

Real estate, while slow-moving, can still be deeply impacted by external factors. Some of these influences include the following:

Employment Trends

How many people are employed in your area will matter. The health of the job market will keep housing prices consistent. In Vero Beach and the neighboring regions, remote work has become popular. Additionally, the main drivers of the Indian River County economy are Healthcare, Tourism, Technology, and Farming industries. 

Economic Trends

You can’t rely on the stock market to give you ideas about local economic trends. This is because local economic trends don’t always mirror nationwide changes. Also, real estate is not nearly as volatile. However, observing the flux of the economy can help you make educated decisions. 

Ecological Health

This may be a strange detail, but before moving into a new area or when selling a house, you’ll want to know about the ecological health of the area. Pollution, nearby nuclear plants, or poorly maintained litter could definitely be a deal breaker. This is mainly an issue for metropolitan areas.  

Educational Trends 

A large percentage of educated people in the area can indicate higher-priced homes. Typically, higher-tiered roles are filled by graduates with more advanced degrees or those with multitudes of experience, resulting in higher income. 

Indicators You Should Look For

There are a few specific changes that you’ll want to pay attention to across the noise of various trends. These include the following:

Housing Shortage Tracker

Check out what new building permits were issued in specific counties. Areas that need more inventory will have a higher density of building permits. This is also a good indicator of economic growth. In Florida, one single-family unity permit is issued for every one to two new jobs between Brevard County, Indian River County, and northern areas of the Treasure Coast, such as Port St. Lucie. 

Days On The Market

Look at how many days local homes were on the market on average. 

Mortgage Insurance and Interest Rates

This is also crucial. Higher mortgage rates result in a higher monthly mortgage payment. The average monthly mortgage payment is now $1,837 in Vero Beach. A year earlier it was $1,043. This is an increase in monthly payments by $602. 

Generational Changes

Different generations will have varying demands. Older generations will want smaller homes. Most adults may want a larger home to entertain and raise kids. Younger generations might want to rent over a home purchase. The demographic of the area matters. 

Year-over-Year Trends

Compare the price range of homes between 5 years ago and today. 

Cash on Cash Return 

Try to understand whether the Cash-on-Cash return is worth the purchase or sale price. For example, factor in insurance, mortgage, taxes, repairs, upgrades, and many other expenses that may be deducted from your overall capital. A buyer might see their home as a future investment.

Property Taxes

While most abhor property taxes, this can also be an indicator. The higher the property tax, the more popular or exclusive the neighborhood. Low property taxes typically happen in rural areas where not much commerce or tourism occurs. 

Websites Where You Can Find This Information

You should only grab information from official websites and sources of information. 

US Census Bureau 

Find new residential construction information here. 

National Association of Homebuilders 

Go here for data on new and existing home sales when looking to buy or sell a home. 

Local News Papers

Local editors will always update you on impactful information that might influence the housing market. 

U.S. Department of Labor

Get accurate information on the state of the job market. 

Federal Housing Finance Agency 

You can learn about all the federal regulations regarding financing for mortgages and more. 

Tax Assessor and Register of Deeds Office

You can find information on property tax from County Tax Rolls and also the price of home sales. 

Zillow, Trulia, and Redfin

Check the neighborhood rates of listed properties. Past sales are also provided on these websites. 

Other Factors to Consider 

You can also find out about lender regulations, interest rates set by the Federal Reserve, consumer confidence, zoning laws, and other factors. You don’t need to know how to do a real estate market analysis like a pro, but preparation is key if you want to purchase your home or sell a house. 

Make It Easier and Work With Dedicated Realtors

Rely on knowledgeable real estate agents to help you decipher market trends. Dale Sorensen Real estate agents have been serving the Treasure Coast and Space Coast communities since 1978 with over 45 years of experience. Find out more information from us about the Brevard and Indian River Counties. We have branches in Vero Beach, Sebastian, India-Atlantic, Melbourne, Port Saint Lucie, and more. Your DSRE Realtor® should be able to help with real estate marketing or for ways to get your ideal house. Call us today or drop by in person!

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