As you do your business planning for the coming year, it’s critical to have an idea of how the market is expected to perform. At Locations, our in-house Research Department provides the tools, resources and education to prepare our agents—and their clients—for every type of market.
Why incorporate market forecasting into your business plan?
A market forecast is simply an informed prediction using past and present data to determine future trends. If you know where major market indicators—sales, prices, inventory—are headed, you can better tailor your business plan for what’s to come.
Forecasting allows you to identify opportunities for your different client segments, as well as for your business as a whole!
How does Locations forecast the market?
Lead Research Analyst John Jacobson has been analyzing Hawaii real estate data for Locations for more than 25 years and has developed a proven method for accurately forecasting the market.
John looks at four main factors when identifying market trends:
- Historical trends and levels: A look at the past 5 or more years to identify recurring patterns in Hawaii’s market cycles.
- Moving averages: A look at the past 12 months (“Rolling 12”) compared to the previous 12-month period.
- Seasonal trends: Typically, sales and prices are higher in the spring and summer months. Days on Market, or how long it takes for a home to sell, can swing by about 10 percent throughout the year and is typically at its lowest point in June.
- Affecting factors: Includes economic conditions (like interest rates and inflation), global impacts (pandemic, war, other conflicts), consumer behaviors (spendthrifts or penny-pinchers).
Market data resources for agents
Because spreadsheets and charts aren’t for everyone, Locations’ Research, Technology and Marketing Departments work together to produce easy-to-understand market data materials for our agents and their clients.
Some of our agents’ favorite market data resources include:
- Oahu Real Estate Report, produced monthly and shared with our clients and the public via email, blog post, social media, local TV and flyers at all Locations offices and retail outlets.
- Oahu Real Estate Report podcast, produced monthly and featuring Locations Lead Research Analyst John Jacobson
- Library of market data slides that can be used in buyer or seller presentations or as open-house handouts
- On-demand charts for single-family and condo market areas, available 24/7, exclusively for Locations agents
Are you taking market data into account when crafting your business plan? Locations agents have access to robust data sets and professional market analysis, along with expert coaching, to ensure that our agents are set up for success, no matter what the market brings. To learn more, contact us today at firstname.lastname@example.org!