How to Research Housing Markets and Make the Best Home Purchase Possible

Whether you’re looking to buy your first home, or your next rental property, you should be equipped with the skills it takes to research a housing market for the best possible purchase.

Not only will this save you time when you’re ready to strike fast on the property of your dreams, but it could also save you money by not investing in a property that is in a declining area or region.

Researching a housing market to make a great investment includes the following steps:

• Start with Historical Data
• Use Outlook Reports
• Examine Economic Data
• Avoid Biassed Information

Start with Historical Data

Before you can understand where the market or neighbourhood is headed, you need to know where it’s been!

You can dig deep for this data on platforms like Zillow, CMHC, Zoocasa, or any other real estate focused listing site.

By clicking through the targeted area you can see the prices at which homes have been selling for over a set period of time, where prices are headed, and how many listings there are at a given time.

Use Outlook Reports

The general public might not realise that they have access to many of the same reports that mortgage and real estate professionals have access to.

For instance, if you head over to the Canadian Mortgage and Housing Corporation’s website and search for “Housing Market Outlook”, you’ll receive an in-depth analysis of Canada’s top metropolitan hubs, and the predicted housing activity in those areas for the next couple years.

Be Sure To Examine Economic Data

You have to be sure to analyze where the job market is headed in certain neighbourhoods as well.

If you’re in the City of Toronto, it’s safe to say that not much will change, but if you’re looking into a smaller town in northern Ontario, it’s best practice to see where things are headed in the job market.

Avoid Biassed Information

During your analysis you should be considering a variety of different sources.

Looking into local news papers, relevant social media accounts, community websites, real estate sites and market outlooks from third parties are the best way to guard yourself against sources who might be producing biassed information.

By consulting objective agents, websites and data you can ensure you’re making the right decision for your investment.

Search for Specifics in the Market You Research

When you’re doing your research in a specific market and you’re comparing and contrasting properties with one another, you also need to be researching things like which property types are the highest in demand.

You also need to research who the most active agents and investors are, the percentage of renter occupied households, overall housing inventory stock, and where the biggest employers are located.

There is a ton of research that needs to be done before making such a large purchase and investment, and utilising the free reports and plethora of online resources available to us is a great way to begin researching housing markets.

After you’ve done your due diligence and you’re ready to put some skin in the game, give Sherwood a call at 1 - (877) - 241 - 6001!