Wednesday, January 31, 2007
Has the housing market reached the bottom?
We always find it amusing when the AP reports the following title "Biggest existing home sales drop in 17 years". This is from an article on the 25th of January by the associated press. Now lets look into the article and see what we can find.
First the last 5 years of home sales has been an absolute record. The article eventually mentions this even though you won't know it from the title. So the number of homes sold is off from what has arguably been the greatest 5 years in real estate history.
December sales were down .8 percent from a year ago states the article. Ok once again down .8 of a percent from a record. All those who had Enron or World Com Stock do you wish that it went down only .8 of a percent? I thought so.
For the year the median housing price still rose 1.1%. For the average price of a home in America at $225,000 that means the average american home owner made just over $2,225.00 for doing nothing but paying the mortgage on time. You know I have to think that if that is a bad thing then what if anything does it take to be good news.
Overall the news is like this in our opinion. If you waited to buy a house there are still some nice choices out there. If you are selling and bought 2,3,4 or more years ago you will be doing just fine. Real Estate will always be a great investment unless we all decide it is more fun to live outside all the time.
As always we leave you to decide the truth about real estate!
First the last 5 years of home sales has been an absolute record. The article eventually mentions this even though you won't know it from the title. So the number of homes sold is off from what has arguably been the greatest 5 years in real estate history.
December sales were down .8 percent from a year ago states the article. Ok once again down .8 of a percent from a record. All those who had Enron or World Com Stock do you wish that it went down only .8 of a percent? I thought so.
For the year the median housing price still rose 1.1%. For the average price of a home in America at $225,000 that means the average american home owner made just over $2,225.00 for doing nothing but paying the mortgage on time. You know I have to think that if that is a bad thing then what if anything does it take to be good news.
Overall the news is like this in our opinion. If you waited to buy a house there are still some nice choices out there. If you are selling and bought 2,3,4 or more years ago you will be doing just fine. Real Estate will always be a great investment unless we all decide it is more fun to live outside all the time.
As always we leave you to decide the truth about real estate!
You be the judge of the real estate market!
Labels: buying a home, home prices, Housing Market, median home value, real estate market, real estate prices, values of homes
Saturday, January 20, 2007
The bubble didn't really burst!!
It is great to discover a report where the information is not all doom and gloom and it is a balanced view of what is occuring in the real estate market on a national level.
The artcile today that I will be discussing is from Kenneth R Harney of the Washington Post Writers Group. His article entitled "Bubble's pop was akin to a slow leak" is, in our opinion, a balanced view of what is happening in today's real estate market.
First, in December new home sales rose 3.4%. Now in some parts of the country, like Southern California, we don't have many new homes. However the strength of the real estate market is directly related to people purchsing new homes from builders. The fact that this figure is up is terrific.
The southern california market was up 7% for the year of 2006. Of course it is not a completely rosy picture. The median price of resale homes nationall fell 3.6%.
What does this mean to all buyers and sellers. I agree with Kenneth in that it means the market is more balanced. Right now the field has leveled for both buyers and sellers. We believe that with rates at near 40 year lows this is a great time for buyers to purchase the property they wanted especially if they have been waiting on the side lines.
Sellers need to understand that it is still a great time to sell their homes and that if they price their home accurately it will sell. Buyers can now negotiate with sellers. Offers 30 or 40% of asking prices are not realistic but sellers assisting with closing costs and making some repairs are!
Kenneth also points out how you can contact your local realtor who farms your area and can get some information on your particular area. That is a great way to find out exactly what is going on and if they are good they will keep you up to date on how the market is peforming so you will know when it is the right time for you.
You be the judge of the real estate market!
The artcile today that I will be discussing is from Kenneth R Harney of the Washington Post Writers Group. His article entitled "Bubble's pop was akin to a slow leak" is, in our opinion, a balanced view of what is happening in today's real estate market.
First, in December new home sales rose 3.4%. Now in some parts of the country, like Southern California, we don't have many new homes. However the strength of the real estate market is directly related to people purchsing new homes from builders. The fact that this figure is up is terrific.
The southern california market was up 7% for the year of 2006. Of course it is not a completely rosy picture. The median price of resale homes nationall fell 3.6%.
What does this mean to all buyers and sellers. I agree with Kenneth in that it means the market is more balanced. Right now the field has leveled for both buyers and sellers. We believe that with rates at near 40 year lows this is a great time for buyers to purchase the property they wanted especially if they have been waiting on the side lines.
Sellers need to understand that it is still a great time to sell their homes and that if they price their home accurately it will sell. Buyers can now negotiate with sellers. Offers 30 or 40% of asking prices are not realistic but sellers assisting with closing costs and making some repairs are!
Kenneth also points out how you can contact your local realtor who farms your area and can get some information on your particular area. That is a great way to find out exactly what is going on and if they are good they will keep you up to date on how the market is peforming so you will know when it is the right time for you.
These bloggers would like to thank Kenneth Harvey for his article and hope that others get a chance to read it.
You be the judge of the real estate market!
Labels: home prices, House market, Real Estate Fall, real estate market, real estate prices, values of homes
