Finding Out What’s Really Happening in Our Market


It seems like no matter where you get your real estate news, the information is always different.
This is because real estate is highly localized, but a lot of the news you hear is national.

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I’m always talking to people about real estate and many of them often have questions based on what they hear in the news. To really know what’s going on, you need to understand how real estate information is gathered. It seems like no matter where you get your information, it’s always different. In many ways, real estate market reporting is nothing but white noise. Real estate is highly localized, but a lot of times the news you hear is national, and there’s a lot of variance between your local market and the national market. When the national numbers get mixed with the local numbers, it does nothing but confuse people. One of the biggest problems is the databases doing all the reporting (Zillow, The Census Bureau, etc.) are all different. It’d be one thing if every time you heard a snippet or saw a headline, it was based on the same data set, but it’s not. It’s almost like real estate’s version of “fake news”—the snippet or the headline only tells you part of the story so that you click on it. For example, I recently saw a headline claiming that the Bay Area was one of the top markets in terms of appreciation because prices rose 18%. As I read into that article, though, I learned that they were referring to the average list price, not the average sale price.
 

It’d be one thing if every time you heard a
snippet or saw a headline, it was based on
the same data set, but it’s not.

 

At 4:43 in the video above, you can see some statistics from a July national housing market report. They indicate that there’s more inventory and the volume of sales has gone down compared to the previous month. However, the same article these statistics come from also shows that the median price of existing home sales has been trending in the same direction for the past four years, so the fact that there's more inventory and fewer sales isn't anything out of the usual. This is not to say that markets don’t change, but they change locally based on local influences. If interest rates go up, obviously that’s going to affect more than just your zip code, but there are many more factors that influence home values. As always, if you have any other questions about this or any other real estate topic or you’re thinking of buying or selling a home in our market, please feel free to reach out to me. I’d love to help you.

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