MarketWatch reports more bad news for real estate...
...on a national level. But it is important for you to remember that the real estate market is more accuratey measured on a LOCAL level.
Today's report by Rex Nutting for MarketWatch sounds very dire: Existing home sales fall to 5-year low of 5.75 million. He quotes National Association of REALTORS statistics that sales were down 11.4% in June 2007 from June 2006. Just yesterday, John Spence reported for MarketWatch that Home-builder stocks fall on renewed housing fears. Now I would like to call a "time out", please, to ask a question in the face of all this bad news:
Do you rely on NATIONAL weather statistics in the morning when you make a decision about grabbing your umbrella on the way out the door? What if it's sunny in Maryland but there is heavy rain and flooding in 5 other states? Basing your umbrella decision on NATIONAL rain averages would be no more ridiculous than allowing these depressing national media reports to influence the price you offer or accept on a home!
State and local real estate statistics are often published by the State Association of REALTORS or the local MLS. In my market, for example, I can look at the zip code where property is located and see whether the existing home sales volume is up or down from last year or last month, what is the average sold price, number of units sold, and the percentage for sale price vs. list price. Just for the record, in Crofton (21114), MRIS (the local MLS) reports that these statistics improved in June 2007 from June 2006:
- Total Sold Dollar Volume +6.56%
- Average Sold Price +1.15%
- Total Units Sold +5.36%
- Average List Price for Solds +1.78%
When you check the weather tomorrow before you leave for work, let the rain forecast serve as a reminder for you to check the local real estate statistics before you sell or buy a home.
Copyright 2007. Margaret Woda. All rights reserved.
CROFTON MD REAL ESTATE: For referrals to Crofton MD or anywhere in the D.C.-Baltimore-Annapolis triangle, contact Margaret Woda at RE/MAX Vision in Crofton MD. (410) 451-1900.
Copyright 2010. All rights reserved.
For answers to your real estate questions about Bowie, Crofton, Davidsonville, Fort Meade, Gambrills, Odenton and other communities in Anne Arundel County, Maryland, contact Margaret Woda at Long & Foster Real Estate, Inc. or simply click on a button below for information you can review online at your own pace:
Katerina - It's hard to convince home buyers and sellers alike that "all real estate is local." Buyer read that prices are plunging, and they make offers 10-15% below list price in spite of the fact that statistics indicate properties are selling about 97% of list price.
Katerina - "It's hard to convince home buyers and sellers alike that "all real estate is local." Buyer read that prices are plunging, and they make offers 10-15% below list price in spite of the fact that statistics indicate properties are selling about 97% of list price."
Make that 95% of list price. Sales down, DOM up, inventory at record levels and lenders are tanking.
Hi, Robert - You are right, it IS hard to convince people that real estate is local, but it is true. An area like ours, with an influx of 20,000 families in the next 5-7 years due to BRAC changes, is just not going to have the same issues as depressed areas of the country. If we fail to educate consumers, then shame on us.
To answer your question, inventory and days on market are up, but so are list prices and sold prices. B, C, D loans are not the norm in my market, and the "tanking" lenders have minimal impact on my immediate local area. Again - real estate is local, just as weather is.