Wow we’re already on Part IV if this research mini series. I hope you found the previous 3 indicators helpful. It is always important to do your research before putting your name on the dotted line and I hope this series will improve the quality of your research.So Part IV is Total Sales, total sales of what now? The total volume of residential real estate sales of course! By looking at the trend of total sales you can start to identify the demand of homes in that area.Here are some questions that you should ask yourself when doing the research:

• How many sales took place last month? Does this look different from the same month last year?
• Is the trend in sales upward sloping (increasing) or downward sloping (decreasing)?
• How have total sales related to the price of real estate in the past?

You want to see an increasing total sales trend. This means that demand is increasing and likely driving prices up.You should be able to find this data by contacting that acting real estate board in that area or by going to Realtor.org or Crea.ca for CanadiansPart III: Personal Income <<Part V: Media Sentiment >> 

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Filed under: Due Diligence, Investments, Real Estate