Look at Local Trends, Not National Stats

Too many people that would like to purchase homes and condos focus on national trends and statistics rather than looking at their local activity.  This is not necessarily their fault though.  The media almost always addresses the housing market in broad strokes and discusses rates, prices, homes sales, etc. on a national average.  People really need to dial into what is going on specifically in the area they want to buy a home or condo.   

Homeownership is still the best way to accumulate wealth and add to one’s net worth over a long period of time.  The major correction in the real estate market is due mostly to the investors and speculators leaving the market.  According to NAR, in 2006 the housing market experienced 29% fewer investor purchases than in the previous year.  Notice I used the word correction rather than “crash”.  Critics always feel that people in the real estate industry typically offer a far too optimistic outlook when things slow down.  Sometimes this is true, but many times it is not.  Industry professionals obviously want to hope for the best but they also have a great insight into the external factors causing the shifts…as well as the factors that point towards then end of the storm.  When people say it’s a good time to buy, there is a reason.  It’s not a good time to buy if you’re looking for a quick flip or to live of an equity line of credit.  It’s a good time to buy if you want to invest in your future and own a home for years to come.  Rates are still at historic lows. 

Now we see rents starting to up in many areas around the country.  Between 2006 and the end of 2007, NAR forecasts that rents will have risen by about 7% in many major markets.  This alone may push renters to buy homes and condos. 

Agents have been frustrated with all the negative hype but now have tools at their fingertips (literally) to help streamline the transaction process.  Web-based software and websites are helping agents and buyers save time and money.  I am not necessarily talking about online discount brokerages either.  That is a whole other story.  All of the online resources such as New Condos Online help agents reach more buyers and sellers in a given month or year than ever before.