We have all seen the headlines from the major news organizations about the real estate market. But have you ever taken the time to think about where that information comes from?
Well first of all, think about the source. If you are the Wall Street Journal, USA Today, NBC, etc., your market is the entire country. Therefore you want to provide them with news that is relevant to all of them right? Therefore, when a national news organization pulls information about Real Estate, they pull national data. Now where does that data come from?
National Data might come from the National Association of Realtors or the Department of Housing, etc. According to the US Census Bureau there are over 128 Million homes in the United States. Think of what a task it is to track the potential sales of 128 Million homes??!! Because of this monumental task, it takes weeks or months to compile all this data.
Which leads us to problem number one; it is usually out of date.
So, now let's say we have all of this data. If you are a national news organization, it would take a week of broadcasting or articles to address each individual market from the east to west cost of the United States. So what do they do?
Problem number two, they average data across the entire country.
Now think of the broad range of homes in the US. That would be everything from a $10,000 home in rural Arkansas to a $20,000,000+ pent house in Manhattan. Doesn't it make sense that the factors affecting the value of the $10,000 Arkansas home are vastly different than those affecting the pent house? This is why national averages might work fine if you want a bird's eye view of the housing market but NOT if you are looking to purchase or sell a home in a particular area.
Real Estate is local; therefore, you need to rely on local data and local information. This is where working with a knowledgeable and educated real estate agent like myself is critical to achieving your real estate goals.
I spend 5-10 hours a week studying what is happening in my part of the valley. If you came to me and wanted to buy a property in the White Mountains up north, or a ranch in Glendale, I would refer you to someone else. Why? Because I don't know the markets there and the things that you need to be aware of. However, if you are looking to purchase or sell in Scottsdale or the East Valley, call me!
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