Alright, it’s clue time for CNN, Fox, ABC, CBS, ETC., ETC. and all the rest of the national media that is trying to paint the mythical “national real estate” market with the same brush.
Truth be told, there is no such thing as any sort of national real estate market, never has been, and probably never will be.
All real estate is local and dependant on market conditions in that local area.
Have a plant closing that costs lots of area jobs? Real estate will suffer along with most other industries in that local area.
Have a new plant opening that brings lots of new jobs and workers into an area? No surprise that lots of people now want to buy homes in that local market area.
According to the latest data from the National Association of REALTORS® (NAR), 2007 is shaping up to be the 5th best home sales year on record………..in spite of foreclosures, in spite of falling sale prices in some overheated local markets, and in spite of the continuing stream of negative press from CNN and the rest of that ilk.
“Lawrence Yun, NAR chief economist, said the data underscores the fact that all real estate is local. “Some metro areas are hot while others are experiencing localized problems,†he said. “The report also shows that home prices in the vast midsection of America, from the Appalachians to the Rockies, are affordable and, perhaps, even undervalued.”
And here’s another perspective from Realty Times editor Blanche Evans:
“Stocks and houses aren’t the same. Over 10 years, a $10,000 investment in the stock market at a normal 10 percent market rate of return would yield nearly $24,000. The same investment as a down payment on a $200,000 home at a normal appreciation rate of 5 percent would return nearly 5 times the stock market return, or over $110,000.”
If you need a home for your family now is a good a time to buy as it’s likely to get. There is a big selection of existing homes for sale, some builders are offering incentives to buy their homes, and interest rates remain at an all time low.
If you need to look for a new Knoxville area home, KnoxvilleMLS.com is a great place to find one.