I have been asked by many clients lately to clarify housing market statistics that they have seen both online or in the paper, or have heard on the news. I’ve found that most of my clients have a fairly solid idea of the basic real estate market as well as many of the challenges facing homeowners and home buyers today. They are doing their homework and trying to stay responsibly informed. But they are confused. And who wouldn’t be?
The numbers my clients are seeing from one source don’t correlate with the numbers they’re finding from another source. They hear the media announcing that the housing market in Orange County is the slowest it’s been since 1989, and values are dropping, and yet they are amazed to see that the median sales price has increased. They hear that there are a record number of foreclosures, but yet they can’t seem to find any “bargain” homes to purchase. So they ask…what’s the deal?
I came across a post from Dr. Housing Bubble the other day and it provides one of the clearest explanations I’ve seen. While specific details of the article are tailored specifically for the greater Los Angeles market, the basic premise holds true for South Orange County as well.
Back in June I wrote a post Comparing Apples to Apples in the Housing Market which emphasized the importance of understanding underlying factors behind real estate market statistics. Understanding the basis for any given set of statistics is essential to one’s complete understanding of the statistics. If you don’t know what you’re comparing, the results will be meaningless.
I encourage my clients to stay informed about the real estate market at all times. A home is one of the biggest investments in one’s lifetime and smart planning can save owners thousands. It is equally, if not more important, for my investor-clients to be aware of potential challenges with 1031 exchanges in today’s market. Ask an experienced and reputable REALTOR® to explain what the numbers really mean and how they might effect your upcoming transaction. No questions are dumb – especially if having the correct answer will save you money.
