The Real Estate Price Index is another set of numbers that real estate investors can use to guide their investment decisions. It is important to understand that these numbers are averages that are taken over a certain time period for larger cities. It is also important to know that as an investor I need to do more in depth research into not only different areas of a city, but also neighborhoods. We know that there can be a fairly large difference in prices for similar properties in different parts of the same city or town. The Price Indexes are a good starting point and guide line, but we still need local information to make the best informed investment decisions.
The following article gives a breakdown of how real estate price indexes are calculated and some of the things to be aware of when using those numbers:
No comments yet.