Housing Crisis to End in 2012: Why I'm Not Thrilled To Hear This

I just read an article saying that analyst firm Capital Economics expects the housing crisis to end in 2012. We can now see the light at the end of the tunnel, right? Not exactly. Although that sounds like great news, I'm not thrilled to hear this and I'll tell you why.

Real estate is hyper local, which means that you'll need to get the facts about your local market before buying or selling a house in that area. 

 

Image: David Castillo Dominici / FreeDigitalPhotos.net

 

 

It's not wise for the consumer to rely solely on information that they hear regarding the housing industry because that information tends to be based on the national housing market. If you've been following the housing news lately you'll have seen that there are areas in our nation that have faired much worse than others. Some areas like Arizona, Las Vegas and California have seen home values drop in the 30-40% range. But we aren't in those areas. We aren't even in those states, which means that that information really doesn't have too much of an effect on our housing market. I'm talking about the one that we live in, work in, and will buy or sell in. The Dallas housing market never saw home values drop close to the substantial numbers that were seen in other areas in the country. 

Real estate news that you should be focusing on should be hyper local news about the market that truly effects you. If you're going to be selling a home in the Dallas, Richardson or Plano areas then you would want to know exactly what is effecting those areas, not what's effecting California. Things that you should really take into consideration are the local job market, the availabilty of mortgages, the direction of interest rates and the political climate. If you're buying a home in one of those areas then you'd want to know what the available housing inventory is for those areas which will help you determine how to present offers on the homes that you wish to purchase. 

Here's some news that you can use. The Dallas housing market is healthy, and is getting even healthier. The local job market is strong and more companies and people are transferring into our local economy constantly. Interest rates are at historic lows and the Dallas housing inventory is at a safe level that indicates a healthy market.

If you want more information about your local real estate market it's a good idea to speak to a real estate expert who studies this market day in and day out. Also, be aware of the things that you read and hear on the news regarding the 'housing market' since it tends to include everyones housing market and not just your market.

 

 

Kenny Ochs

The Todd Tramonte Home Selling Team