We keep hearing about the sagging “national real estate market” on the mass media outlets. Of course, there is no such thing as a “national real estate market.” All real estate markets are local. You can’t paint them all with the same broad brush. To be fair, there is no such thing as a monolithic “national media,” either. Real estate agents are complaining that the media has been over-reporting the negative real estate stories, to the point that it has thrown cold water on folks who were actually thinking about buying.
Let’s pretend for a moment that there is a “national real estate market.” In that case, we should be hearing the other side of the story from different regions across the country. Here are some rays of sunshine coming from various local markets that you might not hear about on network mass media:
real estate markets in Austin, Salt Lake City, and Raleigh have been outperforming recently. These markets are projected to do well in the following year.
- Creative, amazing efforts to fix the subprime mortgage mess are happening. In California, about a month ago, the Governator met with the fourth largest loan servicer of sub prime loans and forged an agreement to keep sub prime loans from adjusting upward!
- The media might be changing its tune, or at least parts of it. MSN Money reports that “now is the time to buy,” Even Trump appeared on the Larry King show recently to declare that this is the time to buy real estate
- Mortgage rates for jumbo loans may have peaked, reports Business Week.
- In Minneapolis, the Housing Affordability Index has increased to 141, the best HAI figure for December since 2003. Coupled with bottled-up demand, this should bode well for the coming market.
- The existing-home sales are expected to rise from 5.78 million in 2007 to 612 million in 2008. New home sales will be down, but this will help the market for existing homes.
- The real estate market in the Northeastern region of the country is showing signs of recovery. This is significant because this was the first part of the country to suffer the slump.
- Despite the recent decline, average home prices are up nationally 80.1% since 2001! Did your stock certificates do that well? It looks like real estate is still a good investment.