21 Questions on Real Estate Market Data

This is going to be a very broad topical writing.  Just gaining a reasonable definition of "real estate market data" assist greatly in narrowing the scope of discussion on the topic. Very often, people believe that market data is all about housing; housing starts, housing sales, foreclosures, etc.

What is Real Estate Market Data? It is an analysis of the local market through the eyes of an interested party.

Dataquick says it this way:

(real estate market data is the analysis of) "local market factors impacting real estate lending, servicing and investment decisions..."

Real estate, of course, encompasses far more than residential housing. Consider just the following types of real estate; residential, commercial, office, light industrial and retail. This discussion about real estate market data will consider asset type as neutral, meaning, everything we discuss herein can apply to any type of real estate asset class. Granted, owners and operators of these various asset classes will view the information through the lens of their portfolio.

Regarding identity of interested parties, this can be anyone with a financial interest in real estate within the market study area.  This too is a broad swath of people and companies.  From insurers to municipalities (for determining their tax base), investors (of course), potential buyers, Residents and commercial tenants.

An Interested Party is anyone with a financial interest in real estate within the market study area.

As a note to the reader, the following categories are not in order of importance for the reasons noted above; each asset class will view the data and data sources distinctly from any other asset class.  For example, a developer building a quiet subdivision may look at low traffic counts as a positive when the reverse is true for a retailer.

 

Auto Traffic. How many automobiles pass the site each day? Car traffic is a demographics question, indirectly.  For example, if a particular site has 35,000 cars a day... who are these people?  Where are they commuting from? Where do they live?

What is the incidence of crime?  There is no such thing as a crime free zone.  We are all susceptible.  What is the incidence of crime again people and property?  How does this compare to other neighborhoods that compete with the subject property?

What is the incidence of violent Crime?  Crime is one thing, violent crime quite another.  Violent crime can occur anywhere, but it occurs more often in areas with limited or not surveillance.

Market

Submarket

Competitive assets

Population statistics - core, substantive

Race and ethnicity

Age Statistics

Household income

Jobs numbers ...employment stability, longevity, who are the stalwarts?

Major employers

Crime

Traffic patterns...Car counts

Public transportation access

Weather. Average temperature

Insurance ratings... weather, flood,

Schools

Medical and surgical offices ...includes dentistry, MRI, cancer treatment -the medical complex

Shopping/Retail

Parks and recreation

Unique landmarks

Public finance rating.  This factor can impact property values... pending bond issues that may raise taxes

Real estate taxes... mil rate, changes in tax rate,

TOP OF LIST... Quality of life. Many of the topics discussed in this book are quantitative- all about measuring numbers, considering the compare and contrast" methodology of determining rates of change and their affect on value. Not so with quality of life

Tourism.

 

Environmental factors. proximity to land uses that affect value (city dump, noise levels, reputation- chester pa)

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