This is the 3rd story in my ongoing post on Real Estate Investing. If everyone’s saying that real estate market is poised for a recovery, it’s time to invest, how do you invest if you are doing it for the first time?
Perhaps a no-brainer answer to that would be – Monitor the Market! If you want to get something, anything, for a good price, there is no substitute for labor and dedication. It is essential to be “in the market”.
What does it mean to be “In The Market”?
You can be “in the market” by constantly monitoring property transactions in your area and keeping a keen eye on changes.
Price, Price, and Price Again!
To be sure if the recovery in property prices is sustainable, have a look if the prices have fallen close to or below the transacted prices during the previous downturn.
If you have access to a property price index in your local area, spot the first sign of recovery in property prices after they have bottomed out.
When you have these 2 changes screaming “buy” in your face, there is a high chance it is timely to enter the market and buy the properties you have been monitoring.
5 Guidelines To Monitor The Real Estate Market
In addition to researching previous transacted prices of properties, you can also pay attention to the average prices of properties in your area. Keep yourself informed of current property prices by doing this:
- Check out classified advertisements and property portals in your area
- Make friends with real estate salespeople especially the ones who focus on selling properties in the same development or condominiums you monitor
- Visit new launches held by developers
- Go for viewings of properties for sale in the secondary or resale marketplace
- Compare current property prices and past prices. I cannot emphasize having a pulse on the market enough.
Related Content On Real Estate Investing:
The First Sign of A Real Estate Market Recovery
Apart from an initial upturn in property prices, look out for a significant increase in the number of property sale and purchase transactions.
When cautious property investors start making courageous moves to buy, the property market would have silently turned upwards. At this time, the number of transactions will have increased – this event is not easily noticeable. What you can do is to observe that properties are being sold more quickly, less turnaround time and less haggling of prices.
If you manage to spot this happening, property prices should slowly firm up and inch upwards in the next 2 quarters.