Predicting the Future: One Real Estate Agent’s Quest for Market Analysis
Anthony Ebanks has been in real estate for almost four years and it did not take him long to notice what the markets in the Cayman Islands, and the Caribbean at large, were missing, “There is not much in the way of true real estate market analysis,” says Ebanks.
“For example, until now, there was no easy or convenient way to analyse the market performance of, say, 2 bedroom pool-view condos on Seven Mile Beach, versus anywhere else for a given timeframe. Possible, yes ^ if you do it manually.”
But to perform that manual analysis would be extremely time-consuming and less than convenient. That’s why Ebanks decided to put his technical and engineering background to work.
He designed a tool called RealtyScope that performs detailed market analysis and presents the results both numerically and visually. Ebanks describes the tool as a “data-visualisation analytical engine.”
Technically speaking, Ebanks says RealtyScope “uses highly advanced query methods ^ operating simultaneously on multiple information sources - to gather results and then present them graphically in a variety of formats.”
Caribbean Construction’s Vanessa Hansen finds out more about RealtyScope and talks with Anthony Ebanks of Coldwell Banker Cayman Islands Realty.
1. VH: Does RealtyScope provide analysis of properties only in the Cayman Islands?
AE: For the moment, yes, that is our focus. However, as a data assembly, correlation and analytical process, it can be applied virtually anywhere ^ not only to real estate, but in fact to almost any information source. In other words, if the data is provided in a structured manner, RealtyScope can almost certainly process it.
2. VH: Who can benefit from the use of RealtyScope?
AE: Anyone in the real estate market. Buyers and sellers who need to zero in on their market’s activity and values; investors who require both market analysis with income and expense information with an eye for finding the best combination of ROI, location and future appreciation; and developers who more or less require everything above along with the best possible advice on where and when to actually build their type of project. This is achieved by correlating the market data with economic/demographic data.
3. VH: What are the key performance indicators (KPIs) in real estate?
AE: That somewhat depends on the market sector, price range, and also the timescale in question, but there are a few that always apply.
In no particular order:
^ The sales price to list price ratio (sometimes also referred to as the Bid to Ask Ratio). This indicator, represented as a percentage of the Sales vs. List Prices, is a strong indicator of a market’s health. For example, if properties were shown to be selling on average for, say, 50% of the asking price in a given area versus 95% overall, then it could be reasonably inferred that there exists a strong motivation to sell in that particular area.
^ The average days on market. Tells us how long, on average, properties of a given type stay on the market before sale. This is an important barometer of market activity and seller expectations.
^ The quantity of transactions, their average value, and sales volume. Generally speaking, the higher those numbers get, the healthier the market.
^ The minimum and maximum sales prices. These serve as outliers, or borders, for market activity. They once again help to frame expectations and provide an indication, in terms of sales values, of market composition.
^ Sales growth. Usually expressed as a percentage over a given timeframe, e.g. growth over previous quarter/year, etc.
As we get more specific, other KPIs come into play such as sales prices per square foot, sales price per acre, etc.
Also, depending on the type of analysis requested and the level of detail required, we can reveal subtle trends such as standard deviation (and its volatility derivative) and several other factors. These KPIs, while admittedly esoteric in nature, can also be quite important to specific types of buyers or investors.
4. Give me the bottom line of what RealtyScope does for the real estate market in Cayman?
AE: By providing a means to instantly perform a numerical market analysis on any sector of the market ^ and also represent those results visually ^ RealtyScope fills an important void in the services offered by real estate professionals.
To learn more about RealtyScope visit www.yourperfectproperty.net or call Anthony Ebanks, Coldwell Banker Cayman Islands Realty, office 345-623-4411, cell 345-916-1782.