We’re talking super\u00a0<\/em>local, like down to the individual block in your neighborhood. Meaning prices… and inventory… and supply and demand, and all the dynamics that influence the ebb and flow of the real estate market<\/a> could be different for you and your friend who lives across town.<\/p>\n So that’s why “How’s the real estate market?” is a loaded question that could make your agent’s brows furrow. “Well, where we are…” you’ll hear them say. Because what’s happening in the national news reports might not reflect what’s happening in their neck of the woods, contrary to popular belief.<\/p>\n What’s all this matter to you, anyway? Well, knowing your local real estate market inside and out helps you get a couple of critical things right when you sell your home: pricing and timing.<\/p>\n If you underprice your home, you\u2019re leaving money on the table. But overprice and you could end up with the dreaded stale listing. Alisha Simpkins<\/a>, a top 1% selling agent in Chico, CA, explains that a home is \u201cgoing to sell for the most amount of money in the first 30 days.\u201d If it sits longer than that, you\u2019re looking at having to make a significant price drop to generate buyer interest.<\/p>\n The timing piece of the puzzle matters, too. \u201cThey need to know: what\u2019s the seasonality of their market,\u201d says Barry Kunselman<\/a>, a top 3% seller\u2019s agent in Denver, CO. \u201cIn Colorado, by July they\u2019ve actually missed the market.\u201d<\/p>\n So how do you get this oh-so-important knowledge? Here are 6 ways to stay on top of your local real estate market that the best real estate agents stand by and use themselves to keep tabs on their area.<\/p>\n Like every other industry, real estate has become very data-driven in the last few years. Real estate agents have access to sophisticated tools that help them gather and interpret local data. A lot of that isn\u2019t stuff you can easily DIY.<\/p>\n \u201cWhen you do it yourself, it\u2019s challenging,\u201d says Kunselman. \u201cYour resources are very limited.\u201d Brokerage firms have complex algorithms to crunch all kinds of data, as well as networks of professionals to reach out to for opinions.<\/p>\n The good news is, all you have to do is ask. Any agent worth their salt will be happy to give you snapshot of your home\u2019s current value without any commitment to working with them. Most will happily give you up-to-the-second information about the market, too.<\/p>\n In fact, when you interview agents to help you sell your home, compare their market analyses to get a sense of whether they’ve got their thumb on the pulse of the real estate market.<\/p>\n An agent or broker will be your best source for local data, so don\u2019t be shy about approaching a few and saying something like:<\/p>\n “I’m hearing that across the country, home prices are going up and it might be a good time to sell. Is that the case for [your neighborhood\/city]? What market trends are you seeing in the area, and where do you see our market going in the next six months?”\u00a0<\/em><\/p>\n One way that agents price properties is by doing a CMA, or comparative market analysis.<\/a> At its simplest, a CMA relies on \u201ccomps\u201d or comparative properties to accurately price your home. A house is a comp if it is similar enough to your house that you can reasonably assume yours will sell for a similar price.<\/p>\n You want to look on a real estate listing site like local public-facing MLS sites or Zillow and find recently sold properties near you. The more recent the better, but don\u2019t go any older than 30-60 days.<\/p>\n The closer to you the better, too. You\u2019re looking for homes that are comparable in as many ways as possible: the same number of bedrooms and bathrooms, square footage, condition, yard size, and any other variable that can affect the price.<\/p>\n Let\u2019s say you\u2019re selling your two-bedroom, two-bath, 2,000-square foot home in Tyler, TX. Here\u2019s what a comp search on Zillow would look like:<\/p>\n If you can\u2019t find close matches, it takes some market knowledge to know how much to add or subtract to the price for things like an extra bedroom or a recently-updated bath. Looking at the wrong comps can be worse than doing no research at all.<\/p>\n Kunselman explains that he frequently gets clients who see a house down the street sold for $400,000, so they think theirs is worth same amount. But if the homes aren\u2019t similar enough, that\u2019s simply not true. If the owners that house down the street just remodeled the kitchen and yours is a little older, you can\u2019t expect to get the same price.<\/p>\n If you can find three or four similar homes to yours, that will give you a good range for what it\u2019s currently going to sell for.<\/p>\n If you see yard signs popping up, that\u2019s the time to be neighborly and find out some details a real estate agent might not be able to get\u2014things like how busy open houses have been, what kind of interest the listing generated, or what people shopping in the neighborhood are on the hunt for.<\/p>\n You\u2019ll also be able to tell whether a home flies off the market in days or sits stagnant for months, and price your home accordingly.\u00a0Talk about hyper-local\u2014walking your dog can be an information-gathering expedition!<\/p>\n Even just knowing the asking price can help you. While CMAs use recently sold properties to determine value, looking at asking price is useful in another way.<\/p>\n According to Kunselman, looking at trends in asking prices can help you see which way your neighborhood\u2019s market is trending.<\/p>\n Nextdoor is another great resource for insider neighborhood info. Not only do many sellers put their listings on Nextdoor, it\u2019s likely that your neighbors would be willing to answer any questions you have about their experiences selling their homes.<\/p>\n Check your Nextdoor newsfeed under the “Housing” category to browse listings.<\/p>\n Another way to stop on top of your local market is to keep an eye on your local media. Read the paper\u2014whether it\u2019s your city\u2019s paper, or a paper specific to your neighborhood\u2014because they\u2019ll often have real estate trend pieces.<\/p>\n Blogs are another great resource. If you live in a bigger city, you might have a Curbed<\/a> reporting on your real estate scene. Patch<\/a> sites exist for even smaller cities, and often have great real estate reporting.<\/p>\n And then there are the hyper-local neighborhood blogs. You may or may not have one for your area, but Google your neighborhood to find them. For example, Candy\u2019s Dirt<\/a> has the real estate gossip from every Dallas neighborhood before the bigger sites pick up on it.<\/p>\n Your neighborhood may also have a list serve for residents\u2014get on that if you can. Of course, this is another area where Nextdoor is helpful, too.<\/p>\n You want to get as much local news as you can, so that you get a handle on what\u2019s happening. For example, if a big development project is slated for a nearby area, that could push your real estate values up (or bring them down temporarily, if the construction causes transit problems.)<\/p>\n If you live in a city where people rely on public transportation, new bus routes or light rail stops could mean a rise in your home\u2019s value, while planned work (like the multi-year L train closure<\/a> in Williamsburg, Brooklyn) could hurt.<\/p>\n Even small things like increased trash pickup, construction on your closest major highway, or new restaurants and coffee bars moving in can give you a sense of whether your neighborhood is set to be the next hot thing or whether it\u2019ll be cooling off a bit.<\/p>\n Every market has a busy season and a slow season. In Denver, for example, Kunselman explains that things start to heat up in the spring, then peak by July Fourth<\/a>. Sellers that time their listing poorly won’t get the best price for their home.<\/p>\n You want to know the differences between trends\u2014is the market going up overall?\u2014and seasonal cycles. If you\u2019ve just started watching the market, you might mistake a normal, seasonal downturn for an overall downturn.<\/p>\n This is why looking at a few years\u2019 worth of data is useful and also why talking to a real estate professional who has gone through the cycle a few times can help you understand what you\u2019re seeing.<\/p>\n Ask your agent to share some real estate transaction data (home price, inventory, days on market) from the MLS with you.<\/p>\n You can also check out the S&P CoreLogic Case-Shiller Home Price Indices, which break down historical home price trends for major metros dating back to 1987.<\/a><\/p>\n The timing will be different for every location, and even different from neighborhood to neighborhood. For example, in really cold places, people tend not to shop in the winter. But in Miami, selling season starts in January. In neighborhoods with lots of families, late spring and early summer are the busiest times, because people want to be settled before school starts in the fall.<\/p>\n1. Talk to a real estate agent who’s already done the work for you<\/h2>\n
2. Look at comps, but be sure they\u2019re the right comps<\/h2>\n
![\"local](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2018\/08\/local-real-estate-market-comps-search-775x432.jpg\")
<\/a>3. Keep your eyes peeled around the neighborhood<\/h2>\n
![\"nextdoor](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2018\/08\/nextdoor-local-real-estate-market-775x455.jpg\")
<\/a>4. Read local real estate media<\/h2>\n
![\"local](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2018\/08\/local-real-estate-market-coffee-shop-775x581.jpg\")
<\/a>5. Understand your market\u2019s timing<\/h2>\n