Capitalising On Market Trends: How It Can Benefit Your Real Estate Business

March 21, 2022
BY Rebecca Gillis

Real estate markets are constantly fluctuating, and in a post-pandemic world, the function of our homes and the importance of our lifestyles are changing. Keeping up with the nuances of market trends relies on a thorough analysis of the big picture.

What is market analysis?

As an agent, you need to display a deep level of knowledge of local markets and the current market trends, from emerging neighbourhoods to growth trends predictions. Good analysis will also consider future infrastructure projects and development, and any government legislation or incentives that may affect the market. It will view global events that may be influencing housing supply and demand, such as a worldwide financial crisis or, as we have witnessed, the boom caused by the pandemic.

While your clients will be doing their due diligence when selling their property, they will lean heavily on your insider knowledge of market trends. Great market analysis, also known as comparative market analysis, is the foundation of all of this. Arming yourself with the correct information means you can confidently counsel potential clients, whether they are selling or buying, about those all-important geographic demographics and projections for suburbs.

Be an expert on local trends

Positioning yourself as a finger-on-the-pulse local expert is particularly important if you are a boutique or independent agency in a small or niche market. Providing your clients with easy-to-digest information about your area establishes yourself as a reliable source of information and builds that trust factor. You should know how much similar properties are selling for, whether investors are purchasing them, how much they can charge for rent, and the time properties typically stay on the market.

Crystallising this information will help sellers list their homes for the right price, but it can also help buyers make competitive offers. The more you generate reliable listing guides, the more likely you will create a reputation as an agency that will get the best possible outcome for your sellers, generating organic word-of-mouth referrals from past clients.

Market trends can help position your agency

Market trends and research are invaluable for positioning your agency in the market. Detailed competitor analysis will reveal what other agencies specialise in, retail, commercial or residential dwellings? Are they focusing on a particular niche, leaving an untapped market that you fill? Knowing your competitors' strengths and weaknesses will inform your market strategy. You can prepare for any new business on the horizon by finding out what significant developments or works are in the pipeline for an area.

Future demands for your area

Using data-driven information will determine the future demands in the area that your agency operates. For instance, if you are an inner-city agency, as the borders open and international visitors and Visa holders return to Australia, the demand for apartment living will rise. If you are a regional agency, you can expect to see a continuation of sea-changers and tree-changers leaving metropolitan areas and seeking houses to buy or rent in popular regional towns.

While this trend is likely to slow, it's unlikely to stop as more Australian workplaces adopt more flexible working conditions to meet our growing demand for better lifestyles and more space. Stay ahead of market trends and use historical data and projections to understand your area's landscape in the next 12 months. Following these trends will allow you to reliably counsel your clients and crucially determine where you should focus your marketing and lead generation efforts.

The who and how of buying and selling

Understanding the demographic of a typical buyer is also essential to know what is fuelling the market. What obstacles or incentives are in place for first-time buyers? What areas can first-home buyers afford with a typical deposit? Is your market owner-occupiers or investors? Good investors do their research and spot new opportunities earlier. With technical advances brought on by lockdowns, virtual buying has increased in popularity. Buyers are more comfortable purchasing a home outside of their city or state without stepping foot inside. As people view their homes as both live and workspaces, what homebuyers look for in homes is changing.

Staying in tune with the broader global and economic trends driving the housing market, as well as future projections and developments in your local area, will help you capitalise on market trends and be that go-to expert for your clients.

Complete market research within the Vault platform

Vault's integration with both CoreLogic RP Data and PriceFinder means you can save time by completing sales valuation estimates and market research directly within the Vault platform.  Watch this quick video to learn more.

Learn more about Vault

With the right CRM in your agency, you'll have more time to focus on what matters most.  People! To get started with Vault today, simply book a demo at any time - we would love to help.

More Articles Like This

Blog - How to Reassure and Uncertain Vendor
How to Reassure an Uncertain Vendor

While it’s natural for a vendor, who is selling their largest asset, to be nervous, there are a number of...

Read More
Blog - The Dos and Don'ts of Marketing Automation
The Dos and Don'ts of Marketing Automation

Read More
Blog - Five Mistakes Property Managers Should Avoid
Five Mistakes Property Managers Should Avoid

Being a property manager can be a satisfying and rewarding career, but it's not without its challenges. From finding good...

Read More
Blog - How a Brand Refresh Can Transform Your Real Estate Agency
How a Brand Refresh Can Transform Your Real Estate Agency

As a real estate agent, your brand is everything. Here are six tips on how a quick refresh can bring...

Read More