Falling Home Prices In Perspective
Consumers are being told over and over that home prices are falling. And statistically they are indeed. If you are in the market, or considering a sale, these reports can make you second guess your ability to sell for a reasonable price. If you are in a position where you have to sell, these reports can be frightening.
But in an interview with ideastream's Rick Jackson, Hoby Hanna, President of Howard Hanna Real Estate Company that operates in Ohio, Pennsylvania, West Virginia, and New York says, "there is more to judging a market's strength than reviewing raw data. The Case Shiller numbers say prices are down, but they are also taking into effect every sale in Northeast Ohio....and that includes foreclosures, short sales from underwater mortgages, and properties that banks are simply dumping. A computer program can't see that - algorithms can't see that. Taking all the recent sales and trying to dump into that a mix of comps....isn't fair." He goes on to say, "Including all the so-called 'distressed transactions' in the calculation depresses price averages, and are not representative of better prices some sellers are actually getting for their homes."
Hanna says despite the new Case Shiller numbers, Cleveland has experienced several month-to-month increases in early 2010. Once combined with Cleveland's relative housing affordability, he sees the overall picture as optimistic for 2011.
If you have questions about your immediate market area, call an experienced agent who specializes in this market. A Realtor can give you an accurate picture of what these numbers mean to you.
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