Sellers Should Focus on Local Trends

The real estate market is usually a pretty stable, slow moving area, but it is in the media like never before these days. While it makes for big news, sellers should focus on local trends, not national markets.

There is something rather humorous about discussing the national trends in real estate. Simply put, there is no nationwide real estate market. It is a discussion based on averages, but the communities making up those averages are entirely different and come with unique circumstances.

Consider the situation in Stockton, California. It is basically a nightmare. Much of the real estate market is either in foreclosure or distressed as shown on 60 Minutes. Basically, it is the worst of the worse. That being said, does it represent a national trend? Of course not.

National trends in real estate mean next to nothing. According to the news, this is the worst real estate market in a very long time. Well, homeowners in Jacksonville might disagree. The market is strong their. Sales are happening. Prices are rising! Does that sound terrible? Nope.

The truth is every real estate market is a self-contained local phenomenon. There are even markets within the markets. Don’t believe me? Consider San Diego. Homes carry outrageous values with average being in the $500,000 range. Homes from $800,000 on up are still selling and carrying their values. Homes under this are hurting. Basically, we are talking about two markets in the same geographical area, but divided by price.

As a homeowner, you should learn from these examples. National and even state trends really don’t matter too much. What matters is what is happening in your neighborhood. Focus on the local statistics. How fast are homes selling? Are home values rising, dropping or simply stable? These are the numbers you need to know, not what is happening in Stockton!