You may have noticed I am a big advocate of putting real estate market information into the hands of consumers.
During most of the boom years, buyers and sellers made life-changing decisions based on thin slices of information. A few comps fished from the MLS. County-level market trends. And, too often, uninformed or skewed interpretations from their agent.
Sure, there were the monthly numbers from NAR. Or the Case-Shiller Index. But they lagged badly. "Recent" sales data on the web were not recent enough.
Zillow and Trulia improved the situation and should be commended for it. They served up tons of market metrics and nailed the user experience. But they were based on some of the same old data, or used fresher data that represented but a fraction of the total available in a given market.
This lead to my bullishness for the MLS: For they have fresh data, all of it. The problem is that MLSs and the brokers they support generally have no idea how to shape that data into something usable.
That is now changing.
Here are some examples:
The Minneapolis Area Association of REALTORS, in partnership with Northstar MLS, recently launched a suite of market reports that are very well done. A detailed summary for their entire region is produced each week; numbers for 100 area communities are published monthly. The visualization of the data is excellent and intelligent commentary is paired with the hard numbers. MAAR even created a blog — "The Skinny" — through which they publish and comment on the data.
Jeff Allen, Research Manager at MAAR, tells me the information is being gobbled up by consumers and professionals alike.
There are obvious limitations here (that reports are only available via PDF is the most problematic), but they intend to address them in the coming months.
I have discussed Redfin's use of IDX to create market metrics before. They have done an amazing job. But Estately appears to have made some nice moves in this area as well. They offer neighborhood level market pages that present at-a-glance views of the price median, inventory and days on market. This, again, is based on their use of IDX.
Top Producer made an early move with their Market Snapshot product. While it's a vastly superior option for agents looking to move beyond marketing with recipes and saccharine proclamations of home ownership dreams come true, it suffers, in my opinion, from some data visualization issues.
I understand MLS data aren't perfect. And, yes, brokers in some markets still play hard-to-get with their listings. But the bottom line is clear: The MLS is the fountainhead of possibility for delivering consumers current, reliable, hyperlocal real estate market information. Brokers, associations and technology companies are starting to tap into it.
And that's exciting.
– Brian Boero
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What about Altos Research at http://www.altosresearch.com, we have been using the data on our site for over a year.
So where do the individual agents go from here? I have work in a small market and have IDX feeds and RETS available and at my disposal. Neither Zillow nor Trulia have any market data from my area and Altos Research is also absent.
Who has a product that allows me to share the data with my consumers?
Numbers, graphs and data are fine but what does it all mean. An arrow up is not always good.
@Geordie
You ask the important question, and one that you should ask your MLS to answer.
@Artur
Data, plus a skilled professional's interpretation of it, is where it's at.
Really enjoy your analysis of the US RE.net and the presentation of market data in particular. In Central America we're working with an aggregation of asking price data. Not as robust a comparative base as sales data but a start.
Brian,
I have maintained for 2 years or more that the value of the modern agent is interpretation and negotiation.period. You awareness is spot on and ready for more industry transition. I love it!!!
Thanks for the great post.
Brian,
Market data was a void that we, as brokerage decided to fill this year. Last year, we released a Q3 market report for our local area, using data from the MLS and our own analysis. In January, we released a year-end market report the same way. We made it available on Scribd (http://budurl.com/2008realestate), and we had copies here in our office that folks could pick up, or we would mail it to them. We live and work in a very small, rural area, but clients and the public alike LOVED the information. We've given report to everyone from our neighbors to the County Board of Supervisors.
Our plan is to do the big reports every quarter, and then to do a smaller version every month that will be available on the blog on our website. We are hopeful that people will find the information very valuable, and it is a great way to establish ourselves as market leaders.
Daniel, that rocks. How many hours do you think it took you to put that together?
I put out market reports so my readers can see more numbers until such time as we are in the big leagues with our small-town IDX. I will say they are finally trying to improve out system, but too bad they had to be forced into realizing the public is entitled to honest, transparent real estate with all the facts. Love 1000 Watt Consulting!
Fantastic post, Brian. We're humbled by your inclusion of us in the discussion.
Associations, Brokers, MLS's all need to understand that they're sitting on a goldmine of information that's richer and cleaner than what's available from any other source.
Brian- You say that my question is a good one for my MLS, but that brings up the question of differentiation.
Currently the graphs and data that I provide and create for my blog are the only decent source of info on real estate trends in my area. I'd love to have something more robust ala altos or the Minneapolis AAR solution, but if my MLS provides it, then all the local agent sites will look the same with the same charts. Sure, my interpretation and comments will be unique, but readers are hit by the headline and the graphic first, and if the graphic is the same…
Brian,
Excellent post and spot on. We worked hard and heavy to develop our market report usinf True up to date MLS data here http://www.atproperties.com/marketreport. Its had a great sticky factor for our clients and the public loves it. Although its not as visually friendly as some others, we take pride in the accuracy of the data. The thing to remember here is that too many companies are making this a "gospel" of the market.
I would pay money to see a dsiclaimer on all of these reports that reads, "the information provided is an overall representation of a particular (zip code/MLS neighborhood) and is provided by (MLS or Public Record) which does not take into account your particular home (beds,baths, year built,finishes, current state, parking, livability, neighborhood, sq. Footage, proximity to public transportation, local restaurants, or anything else not included) that would be used by a Real estate professional in determining the overall true value of your home as compared to relevant properties. In our opinion the best way to find the true value of your home would be to contact a skilled and trusted real estate professional who would provide you with a CMA"
Until then, ours included, these are fancy overviews of market areas… Not homes or neighborhoods.
Matt
The You Factor
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