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Real Estate Trends – Taking the Local Pulse

For the past three quarters, Oodle has been tracking local and national housing prices based on the listings in our index – both real estate listings and rental listings. We are currently tracking over 2M real estate listings and 1M rental listings in the US.From an economic standpoint, evaluating rental markets can provide valuable insight into the potential direction of real estate markets. Rental and real estate markets typically move inversely: as the real estate market shows signs of over-heating (high prices, slowing demand), more potential buyers become tentative, unwilling to invest in an asset with a declining value. The rental market then typically heats up, with competition for available rentals driving up prices.

Rental prices in big cities climbed the last three quarters of 2006, up on average 5% from Q3 to Q4. Meanwhile, real estate prices fell 7% during that same period, partly attributable to a seasonal slump in real estate sales.

The housing trends in some prime markets, including New York, San Francisco, and L.A. appear to lag the national trends. Rental prices in these three cities increased more sharply in Q4 than in Q3, and the real estate prices have not adjusted downward significantly. Sitting on the sidelines may be the right position for the average would-be-buyer in these markets.
2006 L.A. Housing
In contrast, rental prices trended down or stabilized in Boston, Seattle, Philly, and Chicago, indicating buyers may be ready to re-engage.

2006 Chicago Housing
We’ll cover real estate trends city-by-city in next week’s post. In the meantime, for in-depth reports on 12 major cities, including New York, L.A., San Francisco, and Chicago, take a look at some reports we recently wrote based on the Oodle Index.

One Response to “Real Estate Trends – Taking the Local Pulse”

  1. May 7th, 2007 at 10:53 pm

    Zarita says:

    Craig,

    Did you know that Oodle.com was mentioned in the respected 2007 Swanepoel Trends Report that was published a month or so ago. Oodle.com is listed on page 105 under Trends #2 as is listed as one of the larger and/or more interesting examples of real estate aggregators. Some of the others listed include Realtor.com, Backpage.com, LiveDeal.com, Edgeio.com and Propsmart.com.

    Stefan Swanepoel the author of the publication did a very good balanced analysis of the entire residential real estate industry and the Report is overall very positive towards change and new business models.

    If you haven’t read it yet, do your self a favor and get it. It’s a good read. Copies can be bought at http://www.Amazon.com or http://www.RealEstateBook.org.

    Zarita

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