The Art of Market Mastery
The real estate market is changing. We hear about it every day in the news, from real estate agents, lenders, and neighbors. Everyone seems to have an opinion on where the market is now and where we are heading. I bet you do as well. The trouble is, nobody seems to have the same stance. Who do you listen to? Where is quality information found? How can we block out the noise? And what constitutes true market mastery?
Most real estate agents and brokers have access to the same data. It is factual, real, tangible, undeniable. However, how the data is interpreted matters a great deal. I might look at a 5% price drop in listings in my area and determine the market is crashing and everyone should sell now before we hit the bottom. Another may look at the same data and determine we were overdue for a modest correction in the market after several record-breaking years in a row for home values, and believe we are closer to a plateau than we are a precipice. A third agent may simply blame sellers overpricing their homes as if prices are still rising when they have stalled out months ago. Ultimately, it is a matter of perspective.
How Macro Data Skews Local Perception
Another issue: using macro-data to paint with a broad brush. This is frequently how things are done through media outlets who don’t understand how the real estate market works, as they use national market trends. A good rule of thumb to remember: real estate is local. Home prices dropping sharply in Austin, Texas have no bearing on the market in Maple Grove, Minnesota.
Instead, use a more focused approach to gathering data and draw insights from your own pool. If you want to know what’s going on with custom home builders around your local town, talk to the sales reps or builders providing those products to the market. The mark of a successful real estate agent is a robust network developed through years of community engagement and supporting local business owners.
Combining Art and Science to Achieve Market Mastery
You can look at market data all day long, but the fundamental weakness of this approach is all the information is old. It’s in the past. It helps you understand what has happened rather than what is to come. There needs to be a balance of fresh, active, in-the-moment information flowing so the well does not become stagnant.
Volunteer at local charities and get involved with your local government. Support other business owners in your community. These are all great ways to stay connected to the pulse and gather boots-on-the-ground insight. This is the art of market expertise; an intuition pump offering real insight not immediately obvious to the outside world.
What insight would you like to read about? Do you have a specific market segment you want explored further? Send us a message and get your questions answered!
