How to Vet Any Real Estate Market
With home prices in flux, rising in some areas, remaining fairly stable in others and falling in some, it can be tough to know how to make a smart offer on any home. But, if you are willing to do your homework, there are ways to make sure that you neither over-bid or seriously under-bid on the home of your dreams.
Study The Recent Sales History For Homes
Recent sales data tells you what actual homebuyers and investors have paid for homes and condominiums or even multi-family units in the area you are targeting. Check out the data over a period of time to get a true picture. For example, if you study the recent sales data for the past 120 days you will see that 106 homes were sold in the Glendora real estate market for a median sales price of $457,978. Then, look at the same data but for the past 90 days and you will see that 86 homes sold for a median price of $453,485. Next, check the data for the past 60 days and you will see that 64 homes sold for a median price of $444,622. Finally, in the past 30 days, 26 homes sold for about $433,169. All this data shows a pattern that indicates that home prices are still falling in the single-family home market.
Study Recent Sales History for Condominiums
Turning to the condominium market, you will see a slightly different pattern in the Glendora real estate market. Eleven condos sold from January 2011 to the present for an median sales price of $326,264. That price remained fairly stable for the next 30 days but dipped to $292,980 when looking at the data for the past 60 days. Finally, 4 condos sold in the past 30 days for an average price of $293,475. This data shows a little more stability in the condo market when compared to the Glendora home market.
Study Comparable Cities
West Covina is a city in the same general area as Glendora. In the past 30 days, home prices averaged $442,779 and condo prices were $236,359. The maximum price in the West Covina home market was $1,350,000 and the lowest price was $255,000. The maximum condo price in West Covina was $410,000 and the lowest price was $140,000. In the San Gabriel real estate market home prices ranged from $700,000 to a low of $380,000. Condos sold for a high of $345,000 to a low of $320,000.
Study Home and Condo Features
Going beyond generalities such as average high and low prices and price increases or decreases over a period of time, specifics zero in more closely on the type of home or condo you are looking for. So, when you know the price range and the features of the property you want to buy it is easy to search for other homes or condos in the same area with the same features to see what they sold for. For example, let us say you want to check out the recent sales data for Glendora homes that sold for $500,000 to $600,000 with 3 bedrooms and 2 baths. You would find there are currently 7 listings that meet that criteria and it is an easy enough job to compare those properties online.
All this data will help you assess what kind of an offer to make on the property of your choice. As long as prices are relatively stable as in the Glendora real estate market, and you do due diligence regarding the condition of the property you anticipate buying, you can feel safe that your investment will be a wise one.