“S.F, US home prices in free fall“ reads one headline.
“Twin Cities Home Prices Suffer 20% Plunge” proclaims another.
“Home Prices Down 14% year over year” announces yet another.
Talk about ‘yesterday’s’ news!
In January George Bush was President and it was snowing in many parts of the country.
Thousands of homes have been sold since January and Obama’s Stimulus Plan has been passed.
I understand that it takes time to compile data, but January’s home values are not very relevant to today’s market.
The survey asked Realtors their opinions on what sellers thought their homes were worth and what buyers thought of those prices.
More importantly, the survey asked Realtors where they thought home prices were headed.
The results were interesting and varied widely by state.
Realtors’ opinions on home values should be give strong weight when determining the asking price of homes. Afterall, a Realtors’ perspective is often the best one as they are involved with the market every day and take into account data more recent than the January S&P/Case Shiller Home Price Index.
Realtors also take into account recent home price data at the local neighborhood level instead of at the city, state, or national level.
January home prices may provide a reference point for today’s home values, but potential home buyers, including first time home buyers, and sellers need fresher home price information to help make the right decisions.
Most importantly, they also need a read on the current market from an experienced Realtor.