The Importance Of Comparative Market Analysis

For first-time buyers, the housing market is incredibly intimidating and scary. This is especially more true for people who are dealing with the down-home market. However, there is great news for anyone that is young and looking for homes to buy. The comparative market analysis methods are better than ever before and now, the housing market is slowly but surely improving.

In 2016, the homeownership rate in the United States was the lowest it has been in 50 years. Again, this points to the intimidating aspect of buying a home. However, any young person looking at homes should understand that 80% of all residential growth is going to happen in suburban communities over the next ten years. Here is how home buyers should look to use comparative market analysis for their next home.

There are CMA presentations and CMA comparative market analysis ideas given by realtors every single year. However, home buyers need to understand that comparative market analysis is only a part of the equation. This is essentially a method that home sellers use to help price their home but it does not define the truth value of said home!

According to the National Association of Realtors, 56% of buyers 36 years old and younger found their homes online. While this may seem insignificant at first, there is actually a lot of value in understanding this fact. This means that there are young people who are going to be smartened up to comparative market analysis and how it can potentially inflate the value of a home.

In the year of 2017 alone, the value of housing stock across the country increased by nearly $2 trillion. Based on this, it is easy to understand that over the next five years or so this is probably going to continue as a trend. So young people are wise to understand how comparative market analysis works and how it can affect the price of a home.

The 10 most valuable metropolitan areas in the United States are worth 36%, $11.3 trillion, of the total United States housing stock. The reasoning and logic behind this type of stat deals directly with the work of a comparative market analysis. People believe there is great value in living in a downtown area and that is why the value of these homes are more than other areas.

According to the Census Bureau, the median sales price of new houses sold as of February 2018 was $326,800. Again, as younger home buyers step to the forefront of this scene they should make sure they understand comparative market analysis for a fair shake at solid priced homes. If not, they will be susceptible to paying more for a home than they should!

Approximately 19% of all homes sold in 2016 were purchased for investment purposes. The housing market regained some of the loss from the 2008 crash, with median home prices rising 16.9% from $177,000 in 2008 to $207,000 in 2017. Millennials and Gen Yers made up about 34% of home buyers in 2017, a number that’s only expected to rise.

In Conclusion

CMA reports and CMA tools can be used by anyone and everyone to better understand the housing market. Any young home buyer that is trying to get a good deal on their home should work hard to make sure they know the truth about the home they are preparing to purchase.

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