Real Estate Variables and Real Estate Maps. What are the main real estate variables that matter to real estate investors and where are these core variables displayed on real estate maps? A great question, but first let look at some history, then the missing piece is discussed below. Without question, the lack of accurate, reliable and relevant information ultimately contributed to the housing collapse and glut of homes on the market. But in 2017, what has changed?
Today, there is still no real estate services currently available that can sort, filter and analyze information sufficient to determine to real estate value and forecasting, or even the local changes in demographics or economic data, the real estate variables. Critical growth data and data that needs to be used and leveraged to do proper real estate analytics.
Where are the Real Estate Variables?
What influences land prices in the future?
It sure is not property data, which is looking in the rear-view mirror. Far too many rely upon outdated yearly reports and tons of irrelevant facts that truly had little or nothing to do with current property values, let alone projected values!
Zillow, Real Estate Agents, even Real Estate by Zip Code does not supply the latest local real estate variables as of this 2017 update. And firms like Coldwell Banker Real Estate and Keller Williams Real Estate just have MLS or property data.
There is no individual and no service that can honestly assess today s value using last year’s data. This will necessarily create an excessive lag time, where the actual value could be significantly lower or higher than the historical data would suggest. A perfect example is today’s real estate market.
If one were to base today’s value on last year’s prices, one would be seriously overstating current value. The trends from last year to now, including the micro-trends that affect a specific property will provide a more accurate determination not a static value that existed once upon a time.
The Real Estate Variables;
Demographic Data – Updated Monthly and Quarterly
Economic Real Estate Variables – Updated Monthly and Quarterly
Income growth, new jobs, unemployment data all of these affect value determination all the way down to block level. The most current and accurate macro and micro economic data will help produce the clearest, most reliable property valuation while also helping to project future price movement.
And the sheer volume of local real estate variables (367,000+ neighborhoods) forces these data-sets to be displayed in real estate maps. All of this information combines with the economic and demographic data to provide the actual future value of any given property.
Logic tells us that we need the most current and relevant demographic, economic and market information in order to truly assess value, but where do we get this information and how do we identify sources that can be trusted? And, before we go looking for the important specific sources of information or trying to assess their objectivity, we first need to know what factors were looking for.
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