It is a general misconception that real estate agents and multiple listing services (MLS) available online provide the most reliable and timely information on the current state of any local real estate market. While it’s true that people in the profession have a good understanding of general sales trends and price movements, they rely on out-of-date information that is based on past trends in comparable property sales in large market areas. However, what is true for the board real estate market (macro level) may not necessarily be true for the small market (micro level). And usually it is NOT.
Factors that affect home prices, such as employment and income growth, can differ substantially between different neighborhoods in a broader housing market, thus reflecting in different ways on future demand and home values across broader markets and at the block level. .
Therefore, real estate agents and web-based MSLs such as RealtorTrack.com and Zillow.com, which rely on broad market trends and reference prices that may reflect speculative demand and other drivers of non-central demand, do not provide accurate information. about the state of housing in any small local area. Furthermore, they cannot offer any perspective on the future evolution of prices for any particular market, hyperlocal market or group of census blocks.
However, the tools have been developed as an analytical tool that provides reliable information on actual changes at the block (neighborhood) level. Home Value Predictor is also the only online tool available that provides information on future price movements in both broad real estate markets and block level real estate markets. It offers data that is more reliable than real estate agent-based pricing information because it is based on multiple variables, such as disposable labor and income, migration, and other major drivers of demand that determine price growth in any given market. particular block level. This is important because real estate is truly a local market for which only pricing information that is based on variables that are specific to that particular micro market can give an accurate picture of current and future market trends.