Real Estate Trends
Understanding Real Estate Market Trends in Minneapolis
We always hear the saying, “Real Estate is a great long term investment.” How many people actually know when to buy a new house? What factors matter most? What’s the state of the housing market? Using a tool like Power BI, you can quickly answer all these questions on a single, intuitive dashboard. What’s even better is that you can compare multiple neighborhoods over time to look for trends and buy when the market is hot!
In this first graphic we can compare many of the neighborhoods in Minneapolis to find a house that best fits our target price range. Additionally, we can see specifically how many houses were sold in this neighborhood to find out if houses are going fast. By reviewing this type of visualization, we can make an educated decision on neighborhoods based on financial decision making.
Another interesting graphic here is the second one. We know that generally, housing prices will raise every year. But what about the number of homes sold over time? Or even, how long houses are typically on the market? We can focus on particular neighborhoods to find out what the trends are. As we can see with Columbia park, the average home price has been steadily increasing upwards from $115K in 2012 to $213K in 2018.
Additionally, we see that the number of homes has sold has been trending upward (note this dataset contains only Q1 2018 Data which is why we see a lower number of homes sold). As the number of homes sold increases, we see a decrease in the number of days on the market. This is a clear indicator that the housing market in this neighborhood is hot and houses are in high demand.
Using a data set like this, real estate investors to people just shopping for a home for the right price can find out if their getting a great deal for their purchase or could be overspending because of the market. Applying predictive analytics provides another layer of clarity. We could see what the predictive trend may actually be for 2020, or 2025. This can provide a lot of insight when planning long-term real estate investment strategy.