For real estate companies in the United States comparative market analysis tools – often known simply as CMA tools – are becoming more and more necessary in order to have a successful real estate agency. Comparative market analysis is a crucial part of keeping on top of the housing market and can be properly utilized through the use of real estate CMA software. Using real estate software and other forms of technology is a great way to implement the progress of the digital age in your career and to push your particular real estate agency forward and get ahead of the competition.
Though the housing market certainly suffered a great deal in the recession that resulted from the 2008 crash of the stock market, as many of us can recall clearly, it has been recovering in the years since, slowly but surely. Now, in 2018, a full ten years after the fact, the median home price has risen to more than two hundred thousand dollars, reaching a median home price of two hundred and seven thousand dollars in 2017, sometime last year. This is in comparison to the median home price in 2008, which was only just over one hundred and seventy five thousand dollars. This price jump is the result of the median housing price rising by more than sixteen and a half percent.
When discussing comparative market analysis, it is important that we discuss who is buying (looking to buy) these homes in the first place (and this can and should often be kept track of through the regular use of realtor CMA software). Though this may come as a surprising fact, it is young people who are more and more frequently making the serious decision to buy a home. In fact, in 2017 it was found that millennials and Gen Yers made up nearly as much as thirty five percent of home buyers throughout the entire course of the year. It is also important to note that though this is a significant percentage, it is only expected to continue to climb in the coming years.
And as we discuss the fact that younger and younger people are interested in buying a home, it is also important for purposes of comparative market analysis that we discuss how they are finding their homes. Though it is still hugely common to attend viewings and open houses – as well as setting up a private tour with a real estate agent – it is becoming more and more likely that prospective home owners will do their research first on an online platform. With the expansion and regular use of the Internet, it has become a place where prospective home buyers can learn about the type of home that they are interested in before ever setting foot in an actual brick and mortar real estate office. More and more real estate agents are even offering services through an online platform and more than fifty five percent of all home buyers who are the age of thirty six or younger – more than half of them – found their homes first online. It is still recommended however that prospective home buyers see the home in person before making a final decision.
The average cost of homes is another key component of comparative market analysis, as the median or mean cost of home will vary from state to state and, of course, from country to country. In the United States, as briefly discussed above, the average home price is rising. In fact, totaled all together, the homes in the United States are worth a collective thirty one point eight trillion dollars, a massive amount. When we break this down and look at it more closely, we find that much of this wealth is concentrated in the ten most popular metropolitan areas, which contribute more than thirty five percent of the total housing market cost in stock.
Comparative market analysis is an important component for any real estate agency, as it helps to keep agents aware of any relevant trends in the housing market of the U.S.