Have Housing Prices Bottomed? News Reports Across the Web Say 'Yes', But.....

Real Estate Agent with HomeSmart Professionals BRE 01844441 01844442

Have Housing Prices Bottomed? News Reports Across the Web Say 'Yes', But.....

Speculation about the bottom of our housing crisis has been debated for many months now, and almost every day a report that either supports a bottoming of the market, or attempts to debunk it comes across the news wires. But these reports, that use all kinds of technical data that can be viewed in many different facets, ignore a few common sense aspects of a possible bottom of the housing crisis and what it means to buyers.

First, housing prices and sales, as any competent real estate professional can tell you, is localized. What is happening in the California real estate market can be extremely different than, say, the Florida or New York real estate markets, or the Oregon or Colorado real estate markets. And these comparisons are by states. The same Real Estate Housing Days On The Market And Pricecould be said about city comparisons, or even community and complex comparisons.

When we say real estate is "Location, Location, Location", it's because the location of a community or house can vary in quality, amenities, HOAs, special assessments, local and/or state taxes, etc. etc. etc.

Second, all markets are inherently volatile, with highs and lows. Just like the stock market, the housing market has the same highs and lows. But its just more difficult to see the changes in the housing market because buying a house can take much longer than buying stock, or a sweater, or even a car. But the housing market is the same as any other market that exchanges goods and services for money.

So, housing prices and sales can, and will, fluctuate from month to month, and year to year. It is the true nature of any market.

Plus, the reason for buying a house IS different than buying a stock, or a sweater, or a car. Stocks are bought and sold in efforts to make a profit. A sweater is bought to keep you warm. A car is bought for transportation. And a house is bought for shelter- a place to live. Yes, I have simplified the reasons a bit, but in generality, these are the reasons why these types of things are bought and sold.

So really, when considering the purchase of a home, you need to examine if you fall within the simplistic reason for buying a house. If you're buying it to make a profit, or to make rental income, this could change your position and opinions.

And lastly, other factors always will affect the housing market as a whole, and individual areas and homes. These types of factors are government policy, which includes state, federal and local governments. What the Federal Reserve does, what your state does and even what your community does, all dictates housing prices and sales.

Social opinions and trends also affect housing markets. Other factors that have an effect on housing:

  • Interest Rates
  • Jobs and Unemployment (including fears and expectations of the job pool)
  • Construction and Improvements or Dilapidation of Structures and Areas
  • Corporate Locations or Relocation
  • Housing Trends, and Where People Choose to Live (In big houses, smaller houses, Planned Unit Developments, Apartments, etc.)

So what does this all mean? What can we take away from this discussion? The U.S. housing market is both too big, too multi-faceted, too volatile to place a pin-point on a bottom.

It must come down to individual reasons and preferences when determining when the right time to jump in is. It must be about you examining what works for you, and what doesn't. Anything other than that is just irresponsible.

Our Real Estate Websites:

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Posted by
Serving Riverside & San Bernardino Counties
Todd & Devona Garrigus/REALTORS®
HomeSmart Professionals
951-490-3698 Direct for Todd
951-490-3683 Direct for Devona
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Devona Garrigus
HomeSmart Professionals - Redlands, CA
1 (888) 9-LIST-IT

More About Us:

We are standard sale, short sale and foreclosure Real Estate Professionals. We handle home listings, sales and home buyers in Riverside and San Bernardino Counties and can help you buy or sale your home. We are members of the NAR (National Association of REALTORS), CAR (California Association of REALTORS) and East Valley Association of REALTORS, and have experience handling all aspects of the real estate transaction.

If you need a smart and tough REALTOR that works hard for their clients and understands this challenging real estate market, call us now at: (888) 9-List-It. That's (888) 954-7848.

Apr 25, 2012 11:58 AM #1
Devona Garrigus
HomeSmart Professionals - Redlands, CA
1 (888) 9-LIST-IT

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Apr 25, 2012 11:58 AM #2
Devona Garrigus
HomeSmart Professionals - Redlands, CA
1 (888) 9-LIST-IT
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