In real estate, having an expert by your side becomes easy. But once you start doing real estate yourself, understanding the market becomes a part of it. For that, a real estate market report serves as a tool or guide for scanning the market conditions.
Knowing about a key real estate term isn’t enough. One also has to comprehend its meaning and impact on financial decisions. So, to make it simple, here’s a quick guide to help you understand a market report like a pro.
Median House Prices
Median house price refers to the average value in a sorted list of home prices in a specific area. It indicates the demand, supply, and real estate market affordability. Rising median price indicates growing demand in a seller’s market. However, falling median prices indicate increasing supply with a buyer’s market.
Days on Market
Days on Market (DOM) is a metric used to track the average number of days a property listing remains active on the market. It shows how long a property takes to sell after being listed. A shorter number of days means properties are selling fast.
Houses selling faster in a particular area signal a strong and competitive market.
Market Trends
Understanding the market patterns is essential as it provides valuable insights into current conditions. Monitoring key indicators like prices, demand, and interest rates allows you to grasp market directions. Hence, analysing these factors empowers one to make strategic and informed decisions about the best time to buy, sell, or invest.
Rental Yields
If you’re thinking about investing, this is something to look out for. Rental yield is the ratio of a property’s rental revenue to its price. A higher yield equals more profits for you as a landlord.
At Sapphire Estate, we love turning complex numbers into clear, helpful advice. If you’re ever unsure, just reach out to us. We’re here to guide you every step of the way.
