What Trends, News, and Data Do You Pay Attention To!

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To chime in with nothing insightful to add... If it's ok @Dave Meyer  for those that do add some intelligence to this post, because I'm trying to learn more about data and how to use it to analyze a markets, please add a quick WHY you pay attention to that data and what you interpret out of it. Or is that not the intent of this post, then disregard what I'm asking. :-)


For example... @Franklin Romine Specifically, what does the inventory and days on the market tell you? I.E. lengthy days on the market tells me that... or lots of inventory tells me that...

Thanks!!

Macro: Economic policies (specifically interest rates), Migration trends (state level)

Micro: Population growth, job growth, residential inventory, days on market, commercial construction, absorption 

I use data for many different things.  I guess when I spoke about inventory I was thinking of... a home I'm going to list For Sale.  We're listing it in a couple weeks.  I look at what else is for sale similar to the home being listed and see there's not much inventory and that tells me I can push the list price up more based on the current inventory available.  

When we list units for rent... I look at available rentals on CL and Zillow.... I look at available Quantity, Quality and Price.  This tells us how hard we can push rental prices.  How much we can raise rents.

I use data to put myself on the other side of the table to visualize what consumers in the market are doing, seeing and acting, and then use that info... 

we only use the data our title company sends us weekly which is real not hyperbole.

its includes the zips i want to know about.

included in the reports:

1. average sale price and per sq ft average age as well.

2. list of all the active new home subdivisions that are currently selling sq ft and price points and owners of same.

3. on a macro level sales activity is it hot sellers  neutral or buyers market  this data is updated weekly.

I really appreciate the videos you've done on the market lately. I'm a local agent and look at the local trends on every listing appointment so I see everything at that scale but appreciate your analysis for the national market.

Market cycle information, status of interest rates, GDP growth/decline in the most popular U.S markets, 10 year treasury, getting accurate assumptions for underwriting, best websites and software's to find off market 

Currently lumber prices and labor shortages seem to be two big factors in the price of new construction going up fast. I don't just want to know 'what is the cost of the house,' I want some understanding of what is happening to cause that to be the value of the house. 

I read articles about the large national house builders to see what they are doing. I'm sure they are basing their multi-million dollar decisions on a lot of research. I get clued into their understanding about current trends and their predictions of future demand based on how much land they are buying, where they are buying it, and what size and style of housing they are building.

I look at financial news. The DOW, NASDAQ, what sectors are doing well, what is languishing. Are we in a bull market, are we in a bear market? The economic impact of current events (COVID.)

Hey "Data Guy!"

I tend to stay on top of what's happening in the labor market, although getting ahold of local numbers can be difficult. 

I check the MLS in my buy box daily and frequently go back to check actual sale prices, not just "asking price." I also look at rentals in the area and try to take screen shots (size, listing information, bedrooms) to help with underwriting my own rents.

Ultimately I think the data points for analysis will depend on the goal and what's trying to be predicted. That is to say, the data points for an appreciation play are different from the data points for a cash flow rental in a C class neighborhood. 

Probably worth noting that my background is economics and my W2 is as a Senior Business Analyst. I'd love to chat sometime @Dave Meyer as I'm a bit of a data junkie, although real estate is a relatively new game to me. 

Hi @Dave Meyer , one thing I do for my area is keep track of local news because I do not live where I invest. This gives me insight into a new employer who may be coming to town and where so I can adjust my purchase parameters to account for a new variable. Also, local news will give you a heads up on any new legislation that occurs. I am originally from Massachusetts and I saw yesterday that the city or Boston will be adding a fee on all properties sold over $2M. Now, that doesn't impact my personal investments, but if that was my market it would be information I would like to have. Great post! 

I invest in 3BR SFRs in a couple of zip codes. I focus specifically on those areas for listings, sales and rentals.

A data service that would provide some search criteria like {zip code, town, area}, # bedrooms, age and maybe a few other ordinary screening criteria which then produced a trended report of active comps for sale and rent, as well as sold properties would be very nice. Adding onto that to show a range would be ideal. For example, there might be 20 comps in a range, but seeing they cluster around a much smaller price range with a couple of outliers would help quickly understand the data.

I try to conduct market analysis (migration patterns, ratio of renters, large employers) alongside housing analysis (common home types, typical challenges, etc). Still working my way forward into some solid answers about analyzing a new market.

I look at howmoneywalks.com to see who is coming in and out of an area.  For example, in Los Angeles there is a net loss of income going elsewhere.  But then I look at where people are moving from and see that they are generally more expensive areas than LA County.  I do the same review when I look at other counties across the country.  I want to know what kind of people are moving there.