A colleague of ours over in Baltimore made an entry on his blog this year that we think makes a lot of sense. The numbers he gives as examples are not the same as they would be in Northern Virginia, but the idea is the same. Here’s what he said:
“One day this week in the Post an article ran that said home prices have dropped. The day before that the Sun ran a headline implying they are rising again. Confused? You shouldn’t be. With these and other articles you must always read the entire article and read it twice. The Sun’s article spoke of prices in Baltimore City rising this prior quarter. Just because house prices rose in the city doesn’t mean your value is any higher. It could mean a number of things……one is that the upper end sold more than the lower end and that brought the average price that sold up. Maybe the upper end has more new homes in it. Maybe the new homes are selling and the resales are sitting. And since you can’t buy a new home for under 400k in the city, it appears prices are rising. Maybe the old average price included a bunch of shells sold to investors for 10k each and since investors are not buying shells anymore………the average price soars. If you really want to know if prices are rising or falling, ask a decent realtor. They should tell you the truth. Ask someone who is on the ground, working with multiple sellers on a daily basis. They will know the pulse of the market better than a flawed statistic. ” (posted by Pat Hiban at http://www.hibantellsthetruth.com/)
In this crazy sea of media frenzy around the real estate market, we want to remind you that the most important real estate market is the street where you live. If you are curious about what is happening in your neighborhood, please give us a call so we can give you the numbers that are specific to you. Generalizations about national and even local real estate trends are difficult to translate to your home. We are happy to help you make sense of it all and forget the hype.
Give The Belt Team a call at (703) 242-3975. Having been through the markets of the 70s, 80s, 90s and today (doesnt that sound like a radio station tag line?!) we have the experience & expertise needed to guide you through todays market.