6 August 2008

It’s Important to Understand the Housing Market Regionally as Opposed to Nationally

Posted by staceysloan under: Housing and Economy; Buying a Home; Housing Recovery; Life in Orange County .

This is probably the biggest hurdle the real estate industry has to get over in the minds of consumers.  Unfortunately a lot of the news out there is the dismal outlook for national housing.  Regions such as the mid-west, specific cities such as Detroit, or sub-prime havens such as Riverside and San Bernardino or even Las Vegas and Phoenix, have many more problems than we do here in Orange County and Los Angeles.

That is not to say that prices are not poised for a further drop, because they are.  There is more on that in the next section.  But it does mean that when you try to apprise yourself of what the facts are, in order to make a decision as to whether right now, is a good time for you to sell or buy, you should compare apples to apples.  For example, if you have a compelling reason to sell your home, i.e. a job transfer, divorce, a health issue, than now is definitely the right time because experts agree, there is more loss on the way before we are done.  But if selling is optional, consider your benefits.  If you want to sell and capitalize on a move up, then maybe now is good.  You need to talk to an expert and gather all the facts.  If you are looking to buy, what are your financing needs?  Will what you need in a loan program be there in 12 months to make waiting worth while.  Is the price drop of 10% worth waiting for over the need for a place to live, especially if you have found the “right house” as a 25% decrease over its high?  After all, houses are not meant to be day traded.  That was a bad habit that most of the country and certainly Californians partook of for a few years. Read on to see why regional knowledge is good when it comes to real estate.

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