What is a market report?

You may have heard the old saying, "numbers do not lie," and this is one idea that you can take to the bank. If you are to listen to self-made wealthy individuals, there is always one common trait among them. They have a good sense of numbers.  As any savvy real estate investor will tell you, they are avid followers of real estate market reports. 

Yet, I have met people that they say they rely on their guts. Somehow they have this mystical knowledge they understand and predict the market. I have never met a successful real estate expert who claims they go with their gut feelings; however, you may judge it yourself. 

What is a market report?

A market report is a written report that investigates the changes in a market. There are several statistical tools and analyses are employed to make sense of the data available. Some of the statistical tools are simple, and others are complex, requiring experts to perform the analysis. However, lucky for you and me, recent developments in software have made it easy and accessible.

A market report comprises data, charts, illustrations, and written descriptions explaining the changes in a market. Some of the specific data analyzed are demand, supply, price fluctuations, market tendency, price index. Keep in mind that the market report is an information tool for businesses and consumers to make intelligent decisions. The real estate market report is no different from other consumer market reports. Concerning real estate, products are homes, apartments, offices and so forth. A real estate market report can focus on a small community like Willowdale or may have a broad look into a metropolitan like Toronto. Banks, insurance companies, and government may consider market reports encompassing the whole nation.

Regardless of the scale of data, market reports are similar in structure, and they all follow specific criteria. 

Characteristics of Market Report and what makes it useful

You should expect specific characteristics in a very market report. The consistency and expected criteria within a market report make it an excellent tool for professionals. Here is the list of market report characteristics outline below:  

• A written report: Market reports are in written format, with data illustrations, charts and descriptions. 
• A Specific product focus: a market report contains only the transactions of a particular or specific product—for example, you may have seen condominium, residential, office space reports and so forth.
• A specific market focus: A market report is commonly prepared for a distinct market. You may find the market report for a community, city, or province—for example, a condominium market report for central Toronto.
• Particular Time: A market reports are for a specific period. For example, market reports can be monthly, quarterly, and yearly. 
• Definite structure: A market report carry a definite form. Hence, this enhances the efficiency and recognition of the information.
• Market-related information: A market report comprises solely business information related to the product and the market of interest, and it does not include any personal data.
• Market outlook: Some market reports may also include an outlook based on the past market trend.  The market report must present unbiased future market trends based on data the past and present market conditions.
• Taking an impersonal position: The market report must be limited to the professional market data and statistical analysis without referring to any individual or corporation directly or indirectly.

Summary

Many savvy real estate agents, real estate professionals and investors rely on the statistical information contained in the real estate market report.  Real estate agents can utilize the information (1) to help them price the property at the market value, (2) help the clients to choose a particular market (3) and timing of selling or buying a property. Professional real estate investors are not shy to say they will not decide on any property until they fully understand the market condition based on the market reports. It is a bit of great advice we all need to take in; you should also familiarize yourself with the market report and consult with your trusted real estate agent before embarking on and real estate decisions.