Does the number of real estate transactions determine a hot marke

[Osei K Boakye]

Hi BP community 

In choosing a hot market, I know there are some factors to consider such as population, job growth, income, crime rate etc. My question is can an investor use the number of transactions (within 90 days) in the preferred market to determine whether it's a good market or hot

[Frank Greg]

Quote from @Osei K Boakye:

Hi BP community 

In choosing a hot market, I know there are some factors to consider such as population, job growth, income, crime rate etc. My question is can an investor use the number of transactions (within 90 days) in the preferred market to determine whether it's a good market or hot

The number of transactions in an area does provide some clue into sales activity levels in an area.  What is responsible for the sales activity is what you should be concerned with including future sales trend in an area. The definition of 'hot' will vary of who is asking. Sales activity does not often represent profit margins.