Economist's Commentary: June 10, 2008

Tell Me About Your Local Area Market Conditions

By Lawrence Yun, Chief Economist

Analyzing empirical data is always a good way to assess market trends. However, there are many trends that are difficult to quantify or not yet in the "data system" that can provide important information of the latest developments in the market place.

For example:

• Increased phone inquiries
  
• More foot traffic at open houses
  
• Incidence of multiple-bids after sharp reductions in home prices
  
• More than usual incidences of investors and not genuine homeowners buying homes
  
• REO properties "distorting" information as these properties are on the MLSs much longer than similar properties that are not foreclosed.
  
• All-cash purchases on the rise
  
• Foreign buyers' presence or absence compared to norm
  
• Alternative financing arrangements, including seller financing
  
• Home sellers preferring to take the property off the market rather than lower prices
  
• High gas prices changing buyer preference for smaller-sized homes closer to job centers, which is hurting more distant suburbs

I find that much anecdotal information often gets confirmed with hard empirical data after several months. So paying attention to the anecdotal information - particularly if consistent from different sources - can give us a lot of insight into what may be currently going on (that does not show in any of the official statistics).

Send me your story. Please make it short and sweet. Send it to data@realtors.org - I'd like to hear what's going on in your market.

This is one in a series of commentaries by the Research staff of the National Association of REALTORS®. Read more commentaries >

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