One of my main pet peeves in this whole real estate mess is that the news reports on 'national' real estate sales and 'national' home prices, or even 'California' real estate activity which at least is a little more accurate. Real Estate is a micro-economic phenomenon that really doesn't impact other real estate markets a little distance away. What happens to home prices in Las Vegas does not impact home prices in San Jose, let alone Morgan Hill.
It seems the strength of the local economy is a major factor in the stability of home prices. That is why Ohio and Michigan are seeing larger price declines than California, and another reason there is no 'National' real estate market. The Central Valley is taking its lumps as the weakest home market in the state, but Santa Clara County actually had a price increase in 2007 over 2006. However, the farther away from Silicon Valley a city is, we do start to see price declines - Morgan Hill's median price was down 1.5% and Gilroy's median price was down 2.6%.
What does that mean for 2008? Who knows. But think long-term and ask yourself one question: do you believe home prices will be higher or lower in 5 years? How about 10 years? Your answer should determine whether now is the right time to buy a house.
Please let me know if you have any questions. Talking is free - the information is valuable.
Make it a great day!
Joe
Comments(1)