February 27, 2015 by Jeff Lowen
After yesterday’s post of the National Market, I began to ponder – As I always do after a national-level snapshot like that. Although, I offer the overview of the country’s real estate market for a select few of my clients, friends and followers; when it comes down to it, this has nearly nothing to do with what’s going on in the real world!
When I say the ‘real’ world, I mean of course your local market. The national stats do little good for us as individuals other than let us feel connected in some vague, unobtrusive way. Less than the importance of the national weather on any given sunny day.
When I’m asked, ‘How’s the market?’ I’m obliged to answer professionally, of course. What I say, is that it depends… not only on your local market, but what you’re trying to do. Other than that, does it really matter to your home, your community and your situation if the price of homes has adjusted +0.0023% over the last month in Prichard, Alabama? Hell no! …Unless you live there, right!?
The point I’m making is that we have a propensity to compare the real estate market to the stock (And other national financial) markets and we watch this news with high anticipation that what we’re watching, reading or listening to – somehow seems to matter in some way. It doesn’t! Just down the street from where I live, there are homes that sell in two weeks and for seven figures, all day long! I should be so lucky! A few years ago, they didn’t even exist!
So why do they even report this stuff? To give us an overview of statistics that bear little impact on our local and personal communities? Because it sounds good and it’s filler for news stations, reporters and industry professionals? To justify the bzillions of our tax dollars that pay these government bean counters to compile all the numbers?
We all have our reasons, but if you really want to know what’s going on in the world of real estate, you have to ask yourself, “What are my plans with my own little private Idaho?” Yes, I know we want to ‘see’ what the market is doing so we can be better informed to make that decision and yada, yada, yada… The fact is, that if you are making your real estate decisions based on the national market, well that’s just silly. However, if you are making your real estate decisions that impact your life based on what the market is doing, by the time you get your information, it’s old history and that’s why they call it speculation!
Live your life. Make your real estate decisions based on what your plans are, not the other way around!
Note: Timing of the market, also regional, local and community stats are imperative when you’re investing in real estate. This Jabb is geared more toward us as homeowners, not investors. If you’re coming up on a job change, up or downsizing, or just have your own reasons for making a move with your personal residence; go back and read this article again! 🙂
Of course, if you are interested in local statistics, condition and direction of your community and how you can capitalize on it with respect to your own life plans and goals, reach out to me. No matter where you reside in the country. Even if it’s in Prichard, Alabama!