Local? Hyper-Local? National? What IS the Market?

By
Real Estate Agent with Century 21 Results Realty

 

I love watching the news... but when they talk about the real estate market, I cringe. I like to hear the national numbers, but I also know that they are just a framework for a smaller discussion. Yep... a smaller discussion.

old photo of peachtree street, atlanta, GA

It matters what the overall market is doing, but it's not nearly as important as what is happening in your neighborhood. It matters what is happening in Georgia, and the Atlanta Metro market, but not nearly as much as what is happening in your specific city. Real estate prices and demand react to specific local issues much more than to national trends. In fact, the national trend is just a compilation of local and hyper-local trends. What the national market does is create a headwind or a tailwind. That's about it.

Here locally, we look at things like...

  • changing employment statistics
  • companies relocating into or out of the area
  • school performance and trends
  • tax burdens
  • quality of local governmental services
  • proximity to recreation and entertainment
  • ease of movement (commuting, shopping, etc)

 

As we see these things change, we see the market move in one direction or another. A prime example at the moment is the City of Atlanta schools issue. It is possible that the Atlanta City Schools could lose their accreditation. If that were to happen, it would drive down the price of most of the homes served by those schools. The price would be driven down because there would be a lack of demand on the part of buyers, combined with an increase in supply as sellers seek to move to districts without the same problems.

Gwinnett County has one of the lowest unemployment rates in Georgia, below the national average. But there is also a tremendous overhead of foreclosure action. We also have one of the highest performance school systems in the region... and reasonably low tax rates.

The market in Miami or Las Vegas doesn't have an effect on what is happening in Georiga, much less what is going on with real estate in Gwinnett County.

 

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Rainmaker
475,803
Lana Robbins Realtor ® Licensed Real Estate Broker
Aloha Kai Real Estate - Clearwater, FL
Licensed in Florida and Washington

Hi Lane. I like how you are incorporating your videos here at Active Rain. 

Feb 11, 2011 03:13 PM #19
Rainmaker
714,936
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Lane,

Nice mall!  Looks like one of ours in Westchester.  Malls aren't local - but real estate is.  In our area a block or two makes a big difference!  So many people are asking me why they can't find what they want where they want it...Because everyone wants it where they want it to be!  Schools and transportation to the city are the big thing here.  If you've got banner schools and an easy commute you are golden...if not, the market is still bad.

Feb 11, 2011 03:23 PM #20
Rainmaker
1,046,826
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Lane, I completely agree with you.  The Dallas metropolitan area, and Texas as a whole, are also fairing better than the national stats.  We often face an uphill battle when discussing the local market with buyers. 

Feb 11, 2011 03:31 PM #21
Rainmaker
1,077,778
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Lane, what a perfect place to do the market report video for your hyper local area of Duluth, Suwanee and Lawrenceville! You point out so well how the market changes from community to community and price range to price range. Honestly, you could syndicate this post and fill in the blank for other cities, communities, etc. :)

Feb 11, 2011 03:35 PM #22
Rainmaker
75,541
Shantée Haynes
Berkshire Hathaway HomeServices PenFed Realty - Washington, DC
Your Congress Heights Resident Agent

HA! Funny I came across this! Number one, it's down to MICRO local in some instances! Also, it bugs me to no end to see individuals who are an "expert" in some way, shape, or form speak from the realm of NATIONAL television and not be abundantly clear that they're not quoting for the ENTIRE country, that their best bet is to consult with somone in their own local market to get the REALT story on buying and selling where they live!

Feb 11, 2011 04:42 PM #23
Rainmaker
1,050,455
Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota Real Estate Expert

I think they pick and choose the reports that sound the worst however that is local or national!  Local is where its at...thats why there needs to be videos like this.

Feb 11, 2011 05:03 PM #24
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Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Lane, the mainstream media isn't going to give us any good news. Great job with this post and congrats on the feature.

Feb 11, 2011 06:25 PM #25
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Virginia Hepp - Mesquite NV REALTOR
ERA - Mesquite NV Homes For Sale - Mesquite, NV
Mesquite NV Homes and Neighborhoods - Search MLS

Exactly!  And love the video.

Every neighborhood is a little real estate market.  I make a point of showing neighborhoods to out of town buyers, finding out what neighborhoods they like, then sending them the listing reports for those neighborhoods only.  I tell them that when they see the prices go down, then the pendings start going up, get out your check book and watch for the floorplan that they like.  Cause that neighborhood just adjusted and will either stay flat for a little while, or start going up.

Feb 11, 2011 06:37 PM #26
Rainmaker
431,908
Jen Bowman
Keller Williams on the Water - Holmes Beach, FL
Realtor - Anna Maria Island & Bradenton FL

Great job Lane! I was talking to a builder friend the other day and she told me the she heard on CNN that she should wait until Spring to put her home on the market. I told her CNN doesn't sell houses and that people are buying now. You did an awesome job of breaking it down.

Feb 11, 2011 11:30 PM #27
Rainer
69,464
Chris Mayr
D3 Interactive Marketing - Orlando, FL

You are right Lane and Gwinnett is different than Buckhead which is different from South Atlanta too.

Feb 12, 2011 12:22 AM #28
Rainer
52,622
Joyce Herr
Prudential Lancaster Real Estate - Lancaster, PA
Lancaster County & Beyond

I cringe, too when I see those segments. How realistic are they depends on where they are getting their data.

Feb 12, 2011 12:36 AM #29
Rainmaker
1,335,647
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Lane, you summed up nicely why real estate is local. Local issues can definitely impact the market in a specific area.

Feb 12, 2011 01:21 AM #30
Rainer
332,782
Irene Kennedy Realtor® in Northwestern NJ
Weichert - Lopatcong, NJ

It was a please to get to hear your voice, Lane!  Great use of video reporting - and you're right about HYPER local.

Feb 12, 2011 01:25 AM #31
Rainer
24,598
eRealty Houston Real Estate
Buy, or Sell Homes in Corpus Christi - Corpus Christi, TX
Brokerage
Great video
Feb 12, 2011 02:47 AM #32
Rainmaker
1,393,795
Brian Madigan
RE/MAX West Realty Inc., Brokerage (Toronto) - Toronto, ON
LL.B., Broker

Lane,

Good points. it's always interesting to see that one area does reasonably well, when another closeby is truly HOT.

Brian

Feb 12, 2011 03:00 AM #33
Rainmaker
803,203
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

Lane:

Wonderful post.  And of course you are so right.  By the way, I love your video.  Do you give lessons?  I need help with my video.  Mostly, I don't focus on me but on the subject of my video.  As a newbie, I am still working on even attaching my videos to my blogs

Feb 12, 2011 03:35 AM #34
Rainer
122,829
Cory Barbee
San Diego, CA
Broker (760) 563-4022

It is good to have overall market knowledge but you must master the mico market...know your numbers !!

Feb 12, 2011 03:36 AM #35
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Erica Ramus
Erica Ramus - Ramus Realty Group - Pottsville, PA - Pottsville, PA
MRE, Schuylkill County PA Real Estate

Once again it is all about LOCATION LOCATION LOCATION. What is happening around the country may take time to hit your particular neighborhood, or may hit first. 

Feb 12, 2011 06:18 AM #36
Rainmaker
828,584
Barbara Altieri
RealtyQuest/Kinard Realty Group, Fairfield and New Haven County CT Real Estate - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

Lane -- This should be featured on the national news so consumers understand the REAL story on real estate markets.

Feb 12, 2011 02:56 PM #37
Rainer
4,718
May Smith
Atlanta Mortgage Lending - Suwanee, GA

Lane,

Loved your video.  So true.  Many real estate agents also do not know that mortgage lending is affected by the local real estate market as well. 

Feb 15, 2011 04:25 AM #38
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