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Ten indicators to help you choose a home
Oct 6, 2022
Ten indicators to help you choose a home San Francisco
By   Internet
  • Guide
  • House selection index
  • Room Selection Reference
  • House Selection Indicators
Abstract: Different types of houses are chosen for different purposes, with reference to different indicators.

When buying a home, it is important to make a good overall plan, clarify the purpose and needs of the purchase, and purchase a home scientifically and rationally.

You can learn the following statistics to help you detect changes in the market, better understand and evaluate properties, and plan for home ownership.


Demographic changes

Population changes include natural population growth, new immigrants, and migration to cities. Of these, new immigrants become an important source of population growth, while natural population growth is a very slow indicator.

The value is usually the result of the most recent census, i.e. data obtained from the local municipality.

A period of rapid population growth increases the demand in the local housing market, which in turn leads to the development of the real estate industry, construction and other related industries, and the entire national economy is in a period of rapid growth.


Employment rate

The employment rate is the ratio of employed people to economically active people at a given point in time.

The employment status of a country interacts with its economic growth, inflation and social development, and the employment rate is even a direct threat to social stability and the consolidation of state power.

All countries in the world put full employment at the forefront of government work, and data are obtained from various national statistical offices and organizations.


Median house price

Changes in median house prices can predict changes in the housing market, and experienced real estate professionals often use median prices to determine changes in values.

A general increase in regional prices may indicate that more high-priced homes are being built in the area, or that demand for more expensive properties in the area is hot.

A decrease in median price could be due to cheaper properties being built or sold, or first-time buyers moving into the area.

Usually, median prices are measured on a monthly basis. To get a better idea of long-term trends, you can look at 12-month, 3-year, 5-year, and 10-year values, which are more telling.

Short-term median price data can be interesting, but is often confusing and even misleading.

Rental Return Trends

The trend in rental returns is a compelling number. If rental returns start to decline, especially if the median price remains the same, then you need to consider whether tenants will spend that much money to rent again.

If rental returns are rising, then the number of homes in the area may start to decrease, either because more landlords are buying, or there is increased competition among tenants who need to pay more rent.

Examine the median rent chart and search the items listed to find out why the numbers have changed.

To get an idea of rental return trends, check out the new report or do the math yourself. There are different calculations for different ways to buy a home.


Foreign Exchange Rates

When buying a home overseas, the price of the home is the primary factor, but the foreign exchange rate between the two countries is also an important aspect. Choosing the right time to invest can reduce the cost of buying a home, which equates to a direct discount on the price of the home.

While a depreciation of a country's exchange rate can lead to a series of localized inflation and an increase in home prices, this adjustment is generally slow and smooth at normal levels of exchange rate fluctuations.


Crime Rate

Check the recent crime rate in your chosen community. Most countries are well policed, but the crime rate in the location of the property is still a top priority for you to look at when buying a home there.

You can find out about recent crime here, such as how many cases there have been and whether they are serious. Most municipalities will post police department records or crime rates online.


Housing vacancy rate

The housing vacancy rate is the ratio of the number of square feet of vacant housing to the total number of square feet of housing at a given point in time. As with rental returns, the vacancy rate is a concern.

Trends in vacancy rates are important for understanding rental demand and the impact of new development on the market.

According to international practice, a commercial housing vacancy rate between 5%-10% is a reasonable area where the balance between supply and demand of commercial housing is conducive to the healthy development of the national economy; a vacancy rate between 10%-20% is a dangerous area for vacancy and some measures should be taken to ensure the normal development of the real estate market and the normal operation of the national economy; a vacancy rate of 20% or more is an area with a serious backlog of commercial housing.

The housing vacancy rate has remained low for a long time. Even in 2007-2008, the worst year of the U.S. housing market, the rental vacancy rate peaked at 10.7% and the housing vacancy rate peaked at 2.9%. Housing vacancy rates in Europe are also low, at only 2% in the Netherlands and Sweden, around 6% in France, and around 8% in Germany.


Market Housing Stock

Whether or not the market volume has changed recently, whether it is a seller's market or a buyer's market, it gives homebuyers timely warning. When there are fewer houses, especially if the previous houses have been sold out, this is a sign that the market is on fire.

Conversely, if more homes come on the market, then buyers have more options and owners may cash out their equity. The housing market is too high, especially when there is a lot of change. While it means there are deals to be made, it is also a warning.

Length of time a home is for sale

The length of time the real estate market has been pending for sale is also important. It's a useful quick barometer for potential buyers looking to buy a home, but it can also give you an idea of how long it will take you to sell it.

In a hot market, this value may be lower, as well as when spacious new neighborhoods enter the tight market in a hurry to sell. Conversely, it may take longer to sell in a soft and volatile market.


Seller's Discount

A seller's discount is the value by which a seller reduces the price of his or her property for sale, usually expressed as a percentage. A significant seller discount indicates a cooler market and is a sign that the owner is exiting the market. It also signals that home prices will fall.

Likewise, if sellers in a particular area are discounting little or selling for more than the list price, it indicates strong competition, a hot market and strong demand.

Be extra careful if there is a single house where the owner or agent privately promises you a super low discount.


Focus on different data for different purposes of buying a home.

Real estate investment


Long-term holding:This part of people who go overseas to buy a house may be looking at some features of the house itself, such as ancient castles, seaside houses, purely for collection, or looking at the long-term price trend, focusing on long-term investment returns.


Concern index:Median house, foreign exchange rate, crime rate


Short-term holding:This part of the population has a clear purpose, so they are generally most concerned about the trend of rental returns. High rental returns will attract investors, and rental returns in an area will also be affected by rents in surrounding areas.


Focus on: rental return trends, median home prices, foreign exchange rates, employment rates, population changes, crime rates, vacancy rates, time to sell, and seller discounts.


Owner-occupied


Owner-occupiers can include people who live in a home to support their education, support their elders, and take vacations.

Generally these people are more concerned about the crime rate, after all, safety is the most important issue when living in a foreign country. Don't be alarmed if you see a higher crime rate than you thought. There are minor crimes everywhere. If you are not familiar with this area and have questions, you can consult a real estate agent.


Focus on indicators:crime rate, foreign exchange rate, median house price, seller's discount.

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Ten indicators to help you choose a home
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