It's simple economics. Supply and demand is the theory behind every business.
And the real estate market is no different.
That's the message Ahwatukee Foothills real estate broker Mark MacKenzie conveys in his new book, Marketopoly, which hit Amazon.com last month and quickly became the No. 1 seller for real estate books and investment books on the online retail giant.
The book explains how to evaluate local real estate markets and trends to determine the supply and demand of housing.
MacKenzie started tracking that for local markets across the country by teaming up with 75 agents in different markets across the country. Once a month, they get into their Multiple Listing Service (MLS) database and determine what houses are active (supply), and then compare that to the number of properties that have sold (demand).
"Most people track the month's supply of housing, but that's only half the equation," MacKenzie said, adding he was careful to keep the advice in the book as timeless as possible. Rather than naming the current "hot" metros, MacKenzie provides fundamentally sound formulas for predicting safe real estate investments.
The book was originally published in November 2007, MacKenzie said, when the markets were performing terribly.
"At that time, if I had said, ‘Don't invest,' in six months the book would be obsolete," he said.
Also, to provide continually updated data, MacKenzie postponed the book's launch until June, so he can make sure his agents are in place across the country with a comprehensive online inventory of the performance of local real estate markets. The online free membership is available at www.realestateplanning.biz.
"If somebody is considering buying real estate, this (book) should be a prerequisite before they start," MacKenzie said. "If those trends are favorable, then you can start looking at properties."
Marketopoly is available on Amazon.com for $14.25. MacKenzie is also in discussions with Barnes & Noble to carry it nationwide.
For more information, call (480) 600-0330 or visit www.realestateplanning.biz.