Housing Trends: Not A National Phenomenon
The character of the national housing market varies with the new source the story comes from. While some claim that house prices are about to begin rising, others say that valuations and pricing have not yet reached bottom. Fortunately, for individual homebuyers the national trends are nearly meaningless because they do not reflect local market activities.
The movement of each housing area is different; some areas have seen values driven up by speculators, some are still experiencing a decline in values, while yet other markets have stabilized. Because of this it is important to know that local market activity could be very different than the national housing trends so paying attention to national reports is of little value. It is imperative that potential homebuyers give strict attention the activity of the local market before making a home purchase there.
The advice of a real estate agent can be very helpful when beginning a home search, however it is essential to remember they are in business to make money. This means that their assessment might be a little more optimistic than absolutely accurate. Therefore, even though a real estate agent can offer valuable information, it is wise to consider advice from other sources as well.
Websites like Trulia (www.trulia.com) make doing your own research easy. On websites such as this a homebuyer can find a wealth of information about the market being considered including current home values, what they are selling for, and pricing history. There may also be a local site that would include the same information if the larger sites do not cover a certain area. If there is no information online, research can be done through public records. This would provide information about current sale prices.
Since the bursting of the real estate bubble in 2007, it is vital for the potential home buyer to find out where in the cycle the local market is. If the number of available homes is declining and the prices are increasing, it is a good indication that the local market has reached the bottom of the cycle, so it may be a good time to buy. However, this is not always the case. If current buyers are acquiring multiple properties, it likely means that these are speculators and they may or may not be creating a local price bubble. Looking through the local news, talking to local agents, and going through the local public records can help the potential buyer identify and avoid speculative bubbles.
National and regional trends are all but meaningless when it comes to considering a local market. Only studying the local situation and trends can provide the information necessary to make a wise investment.
Wendy Polisi is the founder of Credit Repair College and Finance the Dream. Their weekly video training teaches the insider secrets of credit repair. For more information on credit report repair, please visit them on the web. Finance the Dream can help you find a rent to own house in all 50 states with their custom HomeFinder program.
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Tags: credit, finance, home, mortgage, Mortgage loans, personal finance, real estate, real estate market
