There are many conflicting accounts of the overall national trends in the real estate market today, with some reports saying that the decline in property prices have bottomed out and others saying the exact opposite. However, national trends are virtually meaningless to the independent home buyer as these trends may or may not be applicable to the local market.
Research of a local market can save a homebuyer from making a disastrous investment decision. The circumstances of the local market are probably quite different from the reported national trends; the activities of local markets are quite specific to the area. Some housing markets have stabilized, others are still declining, and in some areas speculative investors have driven up values by purchasing several properties.
If the potential home buyer is using a real estate agent, the agent is likely to provide an accurate assessment of the situation. However, a real estate agent has a vested interest in making a sale, so the information they provide might be overly optimistic. While the advice of an agent is a good place to start, their advice should not be considered exclusively.
Doing your own research online through sites like Trulia (www.trulia.com) can provide useful and unbiased information about the local market in question. These kinds of sites provide useful information about the pricing history and current sale prices for homes in particular local markets. If the local market in question is not covered, look around online and a local equivalent may be available. Failing this, a look at the public records of properties sold in the area may provide some insight into the current going rates.
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.
When it comes to real estate markets the national or regional trends have nothing of value to add. Wise investments can only be made with information gained through careful research and study of the local housing market. - 20763
Research of a local market can save a homebuyer from making a disastrous investment decision. The circumstances of the local market are probably quite different from the reported national trends; the activities of local markets are quite specific to the area. Some housing markets have stabilized, others are still declining, and in some areas speculative investors have driven up values by purchasing several properties.
If the potential home buyer is using a real estate agent, the agent is likely to provide an accurate assessment of the situation. However, a real estate agent has a vested interest in making a sale, so the information they provide might be overly optimistic. While the advice of an agent is a good place to start, their advice should not be considered exclusively.
Doing your own research online through sites like Trulia (www.trulia.com) can provide useful and unbiased information about the local market in question. These kinds of sites provide useful information about the pricing history and current sale prices for homes in particular local markets. If the local market in question is not covered, look around online and a local equivalent may be available. Failing this, a look at the public records of properties sold in the area may provide some insight into the current going rates.
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.
When it comes to real estate markets the national or regional trends have nothing of value to add. Wise investments can only be made with information gained through careful research and study of the local housing market. - 20763
About the Author:
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 free credit 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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