Balanced Real Estate Information

Well our friends as the associated press are at it again. The article "Home sales, prices fell again at end of 2006" by the AP which can be found at http://www.msnbc.msn.com/id/17173680/ paints a dismal picture of the real estate market.

So let's take a look at what is going on. Now first, the 4th quarter was not the best quarter around for real estate but it has been a tremendous last few years. So let's look at things:

• The article states that 40 states declined. When you read a little deeper the median home price fell in 49 percent of 149 metro areas. That also would mean in 51% of metro areas the price did not decline. It depends on whether you are a glass half full or glass half empty person.
• Nationaly sales decline by 10.1%. So we came off a record year of sales and the number of transactions was done. That is not scary nor impressive if you ask me.
• The median price fell 2.7% according to this article. I have read others that state it held. Let's say they are right. Those who wish their World Com, Enron, or Insert Your Bust Stock here, only fell 2.7% please raise your hand! I mean seriously let's think about this. The average homeowner who stays in their home 5-7 years has nothing to fear. Enron & World Com Stock owners cannot say the same thing.
• 73 metro areas had a decline, 71 had increases, 5 unchanged in median value. So that means there were plenty of people still going up in value. The overall market is basically unchanged.

If you really look at things real estate is still a very "able" investment to quote Gary Keller, author of Millionaire Real Estate Investor. It is liveable, stable, & rentable. So don't bail out of your real estate don't panic and know that there is some adjustment occuring.

As usual, you decide the truth!

You be the judge of the real estate market!

Labels: home prices, House market, house values, Housing Market, loans, market bust, median home value, Real Estate Fall, real estate market, real estate prices, values of homes