Real Estate is Local
If you've been thinking of buying or selling a home, you've likely been paying attention to media reports about how much home prices have fallen since the market's peak. One of the media's favorite housing price indicators is the Case-Shiller composite index, which reports how much homes have appreciated (or depreciated) over a finite period. Though it may seem like a good national housing snapshot, the report can be misleading for several reasons.
Firstly, the 20-city composite shows home prices sliding almost 30 percent since the market's peak in 2006. That number is more than double the losses we've seen in either Portland (12 percent) or Seattle (11 percent). Because the composite includes cities like Phoenix and Las Vegas, that "national snapshot" doesn't apply to the Pacific Northwest.
In addition, several significant real estate reports show home price downturns that are far less dramatic than what the Case-Shiller claims. Also, the Case-Shiller doesn't account for how foreclosures can skew overall numbers.
Though it's indisputable that we've seen some depreciation in the Pacific Northwest, we are faring well compared with much of the nation. And there are signs that our market is already on an upswing: the inventory of new homes has declined since this same period last year, existing home inventory has been shrinking over the past several months, sales in the more affordable price ranges are up 50 percent over this time last year, and some markets in our region are seeing overall increases in activity.
When you are pricing a home, either to sell or to make an offer, you need to keep the local real estate picture in mind; the national numbers don't matter. If you'd like to make sure you are getting the most accurate and up-to-date information, I can help. Please get in touch today!
Courtesy of The Gardner Team with John L. Scott Real Estate
Leading in Sherwood Oregon and surrounding area real estate with a commitment to YOUR success,
Jason & Amber Gardner | Call (971) 832-1234 | jasongardner@johnlscott.com | www.TheGardnerTeam.net
Committed to YOUR Success,
Gardner Team Real Estate | Awarded TOP 1% Producer Nationally. #1 in Sherwood Real Estate.
Direct: 971.832.1234 | Email: jasongardner@johnlscott.com
This is a great post. I agree Real estate is local. Our market has not been as much affected as other markets.
I love that line too! "Real Estate is Local" is simple, relevant and oh so true! :-))