AgentMarkets & Economy

2 rules for learning how to read real estate markets

  • Stick with the simplest things that you understand, and spread out gradually.
  • Don't try to predict the future.

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Real estate brokers have two markets to think about, and they could not be more different. The housing market is inherently local. Most brokers -- if they survive their first year -- discover what classes of housing information are useful to them and their clients. The second market brokers must know about is the credit market. IOUs of all kinds (bonds, mortgages, munis, corporates -- all the same at a high level). The 2 rules First rule: Stick with the simplest things that you understand, and spread out gradually. Second rule: Nobody predicts the future. (Your clients will want you to.) Instead, smile and say, “I’m better at predicting the past.” It’s reasonable for you to know the recent and longer-term patterns of interest rates. It is not reasonable to know what the Fed will do next -- if only because the Fed doesn’t know, either. National housing trends vs. local housing trends It’s worth knowing about national housing trends because one could...