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The U.S. housing industry has become an obstacle to economic development since the value fall began in 2006. Lately, numerous price indices, sales reports and anecdotal testimonies are linking to an evident housing recovery this year. This may or may not be a benefit to the wider economy. ď ś What does this indicate for local markets? ď ś

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A typical problem is that most homeowners and renters tend to look at national data to make decisions on the local housing market. National data can provide good trends across the USA. However, any kind of relevance to local markets is overwhelmed by the sheer variety of information.

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A great place to start for local data is the home sales inventory. Inventory is the range of houses you can purchase or ready to be placed on the market. This is simple supply and demand – a large inventory will push prices down, while a small inventory tends to push prices up.

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Since home values come with an inverse relationship to home inventories, market participants can apply inventory data to calculate the best time to place their home on the market.

Lots of resources regarding local rates are available online. Sites like Trulia and Zillow list data about several aspects of real estate. Prospective buyers can perform lookups according to size, value, features and location. Trulia has an advanced “heat map” that displays rates by state and area throughout the country. Though lacking detailed local knowledge, the web is a great initial resource tool.

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Residential property is dependent on supply and demand similar to any other market. Local economic situations can supply hints as to why inventories may be up or down. Think about the Bakken oil growth in North Dakota. Jobs are so abundant everyone is coming from across the nation to look for a job. Home values are increasing because inventories are nearly down to nothing as a result of the strong demand.

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Lastly, probably the greatest way to obtain details about local housing markets is from local realtor businesses and agents. Your local realtor has probably lived in the area for many years, helping with real estate buying and selling. Who better to provide local details?

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Websites might be a good source of information, but only boots on the ground can really explain the situation to clients. Real estate agents can offer that assurance. Trends and dynamics only visible to the human eye alone may vanish in aggregated statistical data.

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Knowing The Local Real Estate Market  

Steps you can take to get to know more of your local real estate market.