Real estate market trends Summarization Prompt

# Real Estate Market Trends Summarization Prompt ## Background & Context Real estate market trends reports are analytical documents that track and interpret movements in property markets across residential, commercial, and industrial sectors. These reports are typically created by real estate research firms, economic consultancies, large brokerages (like Cushman & Wakefield, CBRE, JLL), government housing agencies, and financial institutions. They are consumed by investors, property developers, mortgage lenders, real estate agents, policymakers, urban planners, and individual buyers/sellers wanting to make informed decisions. These reports aim to provide actionable intelligence on where property markets are heading and why. ## Report Structure & Components - Executive Summary/Key Findings - Macroeconomic Indicators (interest rates, employment, GDP, inflation) - Housing Market Metrics (median prices, inventory levels, days on market) - Sales Volume and Transaction Data (month-over-month, year-over-year comparisons) - Rental Market Analysis (vacancy rates, average rents, rental yield) - Submarket Breakdown (geographical comparisons, neighborhood hotspots) - Property Type Performance (single-family, multi-family, luxury, affordable) - New Construction and Development Pipeline - Demographic Trends (migration patterns, household formation) - Financing Conditions (mortgage rates, lending requirements, financing availability) - Market Forecasts and Projections - Regulatory and Policy Impacts - Investment Outlook and Opportunities ## Critical Information to Extract - Percentage changes in home prices/rental rates (monthly, quarterly, annual) - Supply-demand balance indicators (months of inventory, absorption rates) - Transaction volume trends and what they signal - Affordability metrics (price-to-income ratios, mortgage payment-to-income) - Notable market shifts (buyer's vs. seller's market indicators) - Regional variations and outperforming/underperforming submarkets - Key drivers of current trends (economic factors, policy changes, demographic shifts) - Forward-looking indicators (building permits, pending sales, housing starts) - Risk factors and potential market disruptors - Inflection points that suggest market direction changes - Cap rates and investment return metrics for commercial properties - Comparative performance against historical averages ## Stakeholder Priorities **Investors/Developers:** - ROI potential across different property types and locations - Market timing indicators (buy/sell/hold signals) - Risk assessment and potential market vulnerabilities **Real Estate Professionals:** - Pricing trends to inform client guidance - Inventory changes affecting transaction potential - Neighborhood-specific performance metrics **Financial Institutions:** - Default risk indicators and market stability factors - Collateral valuation trends - Lending opportunity segments **Policymakers:** - Affordability challenges and potential solutions - Housing supply adequacy - Economic impact indicators of housing market **Individual Buyers/Sellers:** - Price appreciation/depreciation trends - Best/worst performing neighborhoods - Optimal timing indicators for transactions ## Output Format Guidelines Structure the summary in the following format: 1. **Executive Snapshot** (3-5 bullet points highlighting the most significant findings) 2. **Market Dynamics** (Short paragraph on supply-demand balance and pricing trends) 3. **Key Metrics Table** (Presenting core statistics with period-over-period changes) 4. **Segment Performance** (Bullet points on how different property types and regions are performing) 5. **Market Drivers** (Short paragraph explaining causal factors behind current trends) 6. **Forward Outlook** (3-4 bullet points on projected developments over next 6-12 months) 7. **Action Points** (Targeted recommendations for different stakeholders) The entire summary should be between 500-750 words, emphasizing visual organization and scannable content. ## Special Considerations - Pay attention to seasonality effects and adjust interpretations accordingly (e.g., winter slowdowns vs. market corrections) - Distinguish between nominal and inflation-adjusted figures when analyzing price trends - Note the difference between median and average prices and what each metric reveals - Consider lagging vs. leading indicators when extracting insights on market direction - Be aware that different geographic markets may be in different phases of the real estate cycle - Recognize that luxury and entry-level markets often behave differently and require separate analysis - Understand cap rate compression/expansion in commercial contexts and their implications - Note that "months of inventory" has different benchmark meanings in different markets ## Sample Output Structure # REAL ESTATE MARKET TRENDS SUMMARY: [REGION/DATE] ## EXECUTIVE SNAPSHOT • [Key finding about price movement] • [Key finding about inventory/supply] • [Key finding about time on market] • [Key finding about most significant market shift] ## MARKET DYNAMICS [Concise paragraph analyzing the current balance between buyers and sellers, including how this affects pricing and transaction volume] ## KEY METRICS | Metric | Current Value | QoQ Change | YoY Change | Trend | |--------|--------------|------------|------------|-------| | Median Sales Price | $ | %| % | ↑/↓ | | Average Days on Market | | % | % | ↑/↓ | | Inventory Level | | % | % | ↑/↓ | | [Other key metrics] | | % | % | ↑/↓ | ## SEGMENT PERFORMANCE • **Single-Family Homes**: [Brief performance summary] • **Condos/Townhomes**: [Brief performance summary] • **Luxury Market**: [Brief performance summary] • **Rental Market**: [Brief performance summary] • **Geographic Highlights**: [Top/bottom performing areas] ## MARKET DRIVERS [Paragraph explaining the primary economic, demographic, and policy factors influencing current market conditions] ## FORWARD OUTLOOK • [Projection about prices] • [Projection about inventory] • [Projection about market balance] • [Projection about key risks/opportunities] ## ACTION POINTS • **For Buyers**: [Strategic recommendation] • **For Sellers**: [Strategic recommendation] • **For Investors**: [Strategic recommendation] • **For Real Estate Professionals**: [Strategic recommendation]