Tuesday, January 24, 2012
Want to sell or buy--think local
Ellen James Martin, AZ Republic, Jan 22, 2012, says don’t look at national stats when wondering if the housing market is coming back—local, local, local.
Some nabes are crawling back to life. Others are total losers and will be for a decade.
If you listen to the politicians on how great everything is, you are an idiot (sorry guys—they lie).
Sid Davis (A Survival Guide to Selling a Home), in Martin’s piece, says consult the pros—meaning real estate agents actively working in the area. Appraiser, mortgage lenders, and attorneys also know the skinny.
Pinpoint a neighborhood. Ask for list-=to-sale data for 90 days. If the difference between asking and selling is narrowing, this is good.
Also look at days-on-the-market. If it’s months—the market is weakening.
Don’t look too much at average sales price—a few biggies can skew it. Check median sales prices.
Look around for remodeling signs—if you see them, people there have faith in the neighborhood.
Even if the market is off, if you need a larger house, you will pay less now…so think about that.
Remember--a house is shelter--this idea of an investment came along later.