We all follow the media and certainly reports on the health of the economy and the housing market are first and foremost in our financial lives. There are a number of factors contributing to the reported improving conditions: The First Time Home Buyers Federal Tax Credit (which has now been extended and amended to provide tax saving opportunities for so many more), attractive home pricing (resulted from market conditions including distressed sales) and low interest rates are attracting many buyers into the market. Keep in mind that housing markets are local (i.e. the Desert can be considered a resort area) and values can vary greatly from one area to the next. Nevertheless, keeping an eye on specific information readily available from the media can provide insights to determine effect on your property's value and indicators that point to increases in it's value.
Consider these......
Statistical Data and Trends - Contact your Realtor® and have them brief you or add you to their newsletter allowing you to stay up to date. Tracking the cyclical history of Real Estate has allowed certain presuptions in the past; however, one must stay more in tune as our whole world has changed in this new century. Realtors have statistical data available to give a great snapshot of your local market. Indications are that we've seen the floor of the market (at least here in the Desert).
Available properties - a 5 or 6 month supply of homes is typical in a given market. Here in the desert, we currently are hovering around a 4 month supply. This indicates a likelyhood of rising prices in a market favoring sellers 'Sellers Market'. Should this change with an influx of new listings, the larger inventory will favor the buyer 'Buyer's Market'. Your Realtor can assist you with historical comparisons.
Jobs - The media does a great job of reporting the fluctuations. Keeping an eye on the local job market can tip you to the direction of property values in your local market. In resort areas, unemployment should go down 'In Season' with a positive effect on demand and property value.
Personal earnings - Another area the media reports on frequently as it so affects our financial world. This goes hand in hand with the Job Market in today's world and has a distinct effect on the final category....
Distressed Sales - Foreclosures and Short Sales used to be a speciality area in Real Estate and Investment and now they have so permeated our lives that they've become common buzz words you hear from the line at the grocery store to watching your favorite sitcom. Too many of these in a marketplace is not good. Too many of these in a specific community can be devastating on the property values. Unless you are really savvy, only your Realtor can assist you in determining what's effect these might be having on your own homes vales. Nationally, foreclosure activity is down for the 3rd consecutive month. Foreclosure filings were reported on 332,292 U.S. properties in October, a decrease of 3 percent from the previous month but still up nearly 19 percent from October 2008, according to the RealtyTrac U.S. Foreclosure Market Report released today. The report also shows one in every 385 U.S. housing units received a foreclosure filing in October.
Bottom Line - unless you feel confident in your abilities to interpret all this information, you should contact your REALTOR®. Realtors have the training and experience to properly counsel you as to your neighborhood conditions and property values.
No comments:
Post a Comment