Inflated Market and Inflated Budgets

By
Real Estate Agent with Keller Williams Elite HRRA# 0225063945

So the local paper in Hampton roads ( Virginian Pilot ) publishes the Real Estate Report by The Associated Press. Here is my spin !

I was just reading an article in the Virginian Pilot about the state of the housing market. Its up, its down, its up its down. I swear I feel like Im on a roller coaster. SO lets look at the national statistics.

1. Homes prices fell 12% last year (here is the gloom – Sharpest drop since the GREAT DEPRESSION, really we have to know that !)


2. Median sale price is now at $173,500 (here is the good – YEA people can afford the homes now) Down 23% from the PEAK in 2006


3. Home sales are up 21 % from the bottom a year ago, but also down 25% from the peak (had to sneak good and bad for that last big dip)

Okay here is my spin! STOP comparing everything from the PEAK! It was inflated it was not supposed to happen and if this is the standard by which we measure ,well we are always going to come up short! Good golly if I only look at the months that I had a lot of Real Estate sales close and only compare my self to the peak of earnings I would be terrified of loosing everything I own. No instead my family planned for the future I knew this was not a normal Real Estate Market. I had only been in business 2 years when the boom came and I even knew the market would stop at some point. We built our life around normal income not the inflated market. We did not over spend and create a household budget on what was coming in. To be honest, and Ill put it out to the world. I live on 3500k a month after taxes. YES that is it. We have all the normal bills as everyone else including HIGH Health insurance cost. I’m tired of analyst comparing everything we have to the PEAK. Id love to see if the peak never happened how far off would be be. Id also love to see American’s budget for what they actually earn and not an inflated income.

 

 

Comments (1)

Brad Brinke
ProCraft Inspection Services - Chesapeake, VA

Alison, I completely agree with this.  I see no reason to compare something to when it was unnaturally inflated. I love it that homes in our area are becoming more affordable for consumers.  Enjoy the snow!

Jan 30, 2010 12:31 AM