It’s probably the most frequent question I get from people that know me, but who themselves are not in the real estate business. Regardless of what the market is like, most people always seem to be curious about it. And, if you want to know about it, you ask someone who is in the business. But if you want a factual answer, what you don’t want to do is ask someone in the media and if you listen to their reports, do not give much credence to what it is they report. They really don’t know, and when they report any news about it, you are only going to get a piece of the real (no pun intended) news. Too often today, the piece that you get is going to have a bit of negative spin to it.
One of the main problems with mainstream national news on real estate is that real estate is local in nature, not national. If you had all the statistics at hand for each market throughout the country for any given period, you’ll see that some markets did well, some “so-so” and some poorly. And that is the case today. Unfortunately, the reporting on it will be a bit of a conglomeration of averages.
An area that hasn’t faired very well lately is Las Vegas. But, it may be picking up. You probably won’t hear about it. One report that I saw in January did say that prices were down 28%, but it also said sales were up 15%. A logical question to ask is if that is a bad market or a good one. The answer is obvious. If you are selling – not that good. What if you are buying? Hmm … maybe not bad.
To get a clearer distinction consider all the wild reporting we heard a few years back about the real estate boom. The market was just terrific – IF, you were selling. If you were buying – not so good. Today we are told that the real estate market is not very good. Well, if you are selling a home in many areas, it could be a whole lot better. BUT, if you are buying in those same areas – it could be very good for you.
In the area I serve, last January 2008, we had a 12 month supply of homes on the market. By December, it was a five month supply. That is not news that gets reported, and I can tell you, that is some very significant news. It’s an indication of a more normal market. Many experts consider a five or six month supply to be a normal market. It all goes back to supply and demand. If you have a large supply of homes available, the buyer is king. When the supply drops, it’s going to better favor a seller.
Let’s get back to the original question – “How’s the rest estate market today?” First of all it depends on the market you are in. Number two, it depends on whether you are buying or selling. In some markets prices are still dropping and in others, it seems that prices are going up. As I always advise, do your research. Take the time to do your “homework” (pun intended). Don’t listen to what the person in the cubicle next to you says. They don’t know what you should do. Whatever they tell you will probably be some partial story they heard on the nightly news. Contrary to what is reported, banks are lending money and the interest rates are some of the best ever. And, whatever a home is priced at today, you stand a good chance of getting a better price.
How"s the Real Estate Market Today?
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