Georgia and Missouri Realtors Ask: Is real estate REALLY local?
Those of you that know me, know that I read - a lot.
I read books, novels, magazines and blogs. I read the back of the cereal boxes and I read the local newspaper.
Every once in a while I come across a blog that prompts the old "Boy, I wish I wrote that." Of course, that is because I am usually agreeing with the author.
In this case the author is Lane Bailey, REALTOR & Car Guy from Georgia. (the state not the country)
I often find myself in this discussion with people - yes, real estate is local and for the most part, yes Missouri has been spared the brunt of the problems. BUT, we do not live in a bubble.
We are just now starting to have difficulties with obtaining financing for some of our buyer clients. This is not due to what is happening in Missouri - it is due to the fallout around the country. We are now seeing a decrease in our sales, mainly I believe due to the problems of California, Nevada and Florida. There is less NEW money coming into our state from around the country.
I will keep you no longer... Lane Bailey is asking, Is all real estate REALLY local?
The NAR has been rallying around a new battle cry since the real estate market went from rampage to challenge. Most everyone has heard it by now...
All Real Estate is Local...
Well, it is, right? Isn't it? Well, yes and no.
I used to be firmly in the "real estate is local" school... in fact, before the NAR thought it was cool. But, as the NAR has shifted positions, I felt the need to re-examine MY position. I don't like it when I agree with the NAR too much.
Are you fer it?
No, that isn't a typo... it's a Southern thing.
Obviously, if there is an oversupply of homes in Atlanta, they can't get shipped to Charlotte to fix their shortage. What gets built in Lilburn stays in Lilburn... (did you recognize that?)
Or are you agin it?
The other half of that Southern thing.
But, when the cost of living, which is dramatically affected by home values, decreases in one area and increases in another, companies may find the lower cost area more attractive for relocation.
And what I came up with is this...
Real estate is a lot like the weather. The average temperature for the US is between about 53° and 54°. But that has almost no relevance to anyone... except for comparison. Right now in Atlanta it is a cool August day... about 90°. In a few months, International Falls will have a balmy afternoon with a temperature around -14°. Either of those would be a far cry from the US average.
But, there is a relevance to the national weather. You might think that Hurricane Katrina doesn't affect you in St. Paul, MN, until the price of gas goes up and refugees wander into town. You might think that the cold winds of Montana don't affect you until the price of beef goes down and then up from a cattle freeze.
Just as there are national effects from local weather, as well as regional and of course, local... there are local, regional and national effects from the real estate market.
Real estate IS local...
And it is regional and it is national. The "national market" that some claim doesn't exist, DOES affect transactions almost everywhere.
*** From GarageHomesUSA.com ***
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