Many people think that facts and figures are the best way to judge the market, but there’s more to the story than this. Let’s discuss.
Often when people think about the state of our real estate market, they tend to take into account the obvious factors like the number of available homes, the political climate, local employment trends, and other such points of interest. However, what people sometimes fail to consider is that there are also many external factors at play.
Don’t get me wrong: Keeping trends like interest rates and appreciation rates in mind is certainly a good idea, but it’s also important to account for human error. Even real estate professionals can sometimes get the facts wrong. Let’s say you’re thinking of selling, but have been dragging your feet on making a move. By the time you get around to listing, there are suddenly four or five other properties for sale in your neighborhood. As unlikely as this might sound, it happens. There is no way to precisely predict what’s going to happen in our market—especially on a hyperlocal level.
National trends only reflect the average direction of various market conditions. Even though prices are rising across the country, overall, for example, prices are flattening out and even decreasing in certain areas of Orange County.
The bottom line is to take reports from the media with a grain of salt. The facts and figures that come out about our market only tell part of the story. There’s simply no way to predict how the human element of our market will impact local real estate. Numbers don’t solely dictate the market—buyers, sellers, homeowners, and real estate agents play a major role, as well.
Thankfully, even in light of recent recession rumors, our current market is still going strong. Inventory is plentiful and interest rates are low, meaning buyers have a lot of properties to choose from and have greater purchasing power to leverage during their search. This benefits sellers, as well.
Even if our economy begins to slow, this doesn’t mean the housing market will do the same. In fact, many experts predict that home prices will continue to rise over the next 12 to 24 months, depending on where you live.
All in all, now is the time to connect with a Realtor (like myself) to talk about your real estate goals in relation to what’s happening now. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.