The buzz phrase being heard right now in real estate, is the importance of hyper-local data. In Phoenix, the hyper-local data source for residential agents is the Cromford Report. Cromford is an analytics company that has an agreement with the Multiple Listing Service (MLS) Board. Analysts download the MLS data every day, gathering deep data on every facet of the residential market in Maricopa and Pinal County and then offer a constantly updated analysis of market trends.
Cromford Report tells all
Cromford Analyst Tina Tamboer says she and her fellow analysts file through all the information and offer daily observations and a look forward at where the market is headed. She says, agents can draw on the Cromford Report to understand how a specific zip code is responding in the market or what buyers are doing in specific price range. More generally, she says Cromford’s analysis tells agents whether it is a sellers’, buyers’ or balanced market.
Managing expectations and post-crash PTSD
Tamboer explains, “It’s very hard to convince a seller to lower the price on his or her home without being able to show that the market is changing. We are coming out of a sellers’ market and agents can use this data to manager buyers’ and sellers’ expectations.”
Without analysis, Tamboer says it’s easy to be misled by the straight numbers. Many agents, she says are still suffering PTSD from the crash, so any downward trends induce panic. For instance, as we mentioned, Phoenix remains a sellers’ market, but it is a much weaker sellers’ market than it was. According to data indicators, we can expect to fly the sellers’ flag for at least the first half of 2019.
We are not crashing
“We’re not crashing,” says Tamboer, “but the time to ‘dump your junk’ and get rid of those hard to sell listings is now. It’s still a good time to sell but it’s not a good time to overprice a hard to sell listing. Agents need to bring sellers’ expectations in line with the data.”
And the data says Phoenix’s real estate market is getting back to normal, swinging from an incredible four years’ sellers’ market toward a balanced market. By the later half of 2019, supply and demand will likely be high-fiving each other.
Less transactions = lay offs
However, this market correction will also translate into less transactions, and that means lay-offs in the real estate industry may be coming.
Tamboer explains, “The market is self-correcting, so we will see the market begin to weed out various players to adjust to the smaller numbers of transactions. Sellers and buyers won’t notice, but people inside the industry will.”
Crash vs correction: understanding the difference
Understanding the difference between a crash and a market correction is what having access to such hyper-local data means. Some agents, though, may find the sheer volume and depth of the data collected and analyzed in the Cromford Report intimidating. They may not know how to customize and utilize what is being presented. To address that, the Cromford Report offers classes and tutorials that teach agents how to maximize their use of the information presented.
At Landmark Title Agency, our residential and commercial teams are always looking to maximize your real estate transaction experience. We work with residential and commercial realtors and their clients providing escrow and title services for even the most complicated transactions. If you have any questions or need assistance, please contact us at (602)768-2800 or visit our website.