Despite all the national coverage, Real Estate is a local game. Always has been. Always will be.
The following quote from Andrew Jeffrey reminds us that when the real estate market turns, it will turn by street, and by neighborhood. This will happen long before any of the widely followed indices will register the shift:
“The local bottom that the broad housing market experienced in April 2009 may yet be surpassed to the downside. If it is, housing bears will pound their chests, stubborn pessimism vindicated. They will be mistaking the trees for the forest. This recovery, which in many areas remains in full force, has been, and will continue to be, highly local in nature. Fundamentally strong markets have thrived, while weak ones have languished. National, state, and even city-level indicators have been masking trends that are ongoing on a neighborhood level. This will continue, and those that ignore it will miss out on countless opportunities.”
In other words, if you wait until the Nation or the Twin Cities shows broad based recovery, prices in the neighborhood you have been dreaming of may be a lot higher, and interest rates almost certainly will be.
· 10 Reasons to be Bullish on Housing [Minyanville/Andrew Jefferey]
February 7th, 2011, via Yahoo Finance