Profiting From Real Estate Investments An Investor Newsletter From HomeVestors Of America, Inc. By Marcie Geffner / Vol. 1 No. 4 02/28/2006 How To Hunt For Housing Market Data Real estate investors need reliable hard data about local areas and neighborhoods so they can make smart decisions about where they want to buy, sell and own property. This data can be purchased from professional research companies or gathered directly from public and private sources. Either way, such information collection can be well worth the effort to avoid costly mistakes. Data sources naturally are subject to biases, which aren't inherently problematic, but should be taken into consideration when the data is analyzed. One way to minimize the effect of biases is to weigh data from as many sources as possible. Here are some suggestions: The U.S. Census Bureau collects statistical information about U.S. household demographics, housing markets and other subjects. One of the best features on this government agency's Web site, www.census.gov, is "American Fact Finder," which searches census information from the year 2000 by state, city, town, county or ZIP code and instantly displays its findings in a report The U.S. Bureau of Labor Statistics compiles information about salaries, wages, employment and workforce demographics in various economic sectors. The "At-a- Glance" function on the agency's Web site, www.bls.gov, displays this data by state or locality. State departments of labor also collect this type of data and may make it available to the public. Labor statistics suggest how much rent local workers can afford to pay for housing. Many colleges and universities have real estate departments that prepare reports about local housing markets. Examples include the Joint Center for Housing Studies at Harvard University, the Real Estate Center at Texas A&M University and the Richard S. Ziman Center at the University of California, Los Angeles. These academic reports research a wide variety of housing-related topics. Some local government planning agencies collect data about economic and population trends, local housing markets and new construction that's in the planning and zoning stages. New construction creates more housing in the local market and can put pressure on prices and rents for older housing if demand isn't sufficient to absorb the new supply. Local planning agencies that collect this information may offer it free or for a nominal charge. Local building permit offices also can be a source of information about planned new construction after the developer has applied for or received a building permit. Some building departments compile this information into reports; others simply make their own records available at the department. Local newspapers and business journals publish information about new housing permits, starts, completions and sales; resale housing market sales and prices; local employers' hiring and downsizing plans; neighborhood revitalization programs and more. Investors who collect such data from these publications over time can make better decisions as to whether certain local areas are good or poor prospects for investment. National, state and local realtor associations, real estate brokers and multiple listing services also disseminate data about local real estate markets and operate Web sites that display descriptions and asking prices of for- sale homes and condominiums. This information can help house investors track trends in the local market. Lastly, savvy investors don't overlook the value of using their own eyes and intuition. An attentive walk through a target neighborhood can reveal whether the streets are clean and attractive or dirty and littered, whether the homes and apartment buildings are well-maintained or neglected, and whether or not there are a lot of new help- wanted, house for-sale and apartment or house for-rent signs in the area. Copyright 2006. Marcie Geffner. All rights reserved. COMING NEXT ISSUE: Some questions you should ask before you hire a real estate agent. The Investor e-Newsletter is provided free by HomeVestors of America, Inc. HomeVestors of America HomeVestors has created a powerful system for buying and selling houses that gives each franchise owner a competitive advantage. If you want to know more about how HomeVestors can help you build a real estate investment business, give us a call at 1-866-249-6932 or visit www.uglyhouses.com. If you have a question, comment, or an idea for our newsletter, please click here. <back | printable version