We‚Äôve all heard it; ‚Äúreal estate is local‚ÄĚ. I‚Äôm not so sure.
I believe that all of the different ‚Äúlocal‚ÄĚ real estate markets are in fact intertwined with one another. While there is not much value in a national average or median real estate price, there is value in national sales volume, national inventory levels and other national housing statistics.
Think of them as a barometer – a measure by which you can assess your local market. Perhaps your market is selling more homes on average at a higher price point than the national average. Perhaps it‚Äôs less. Either way, national market statistics matter. You can use this information as part of a general wellness test of your local market. Not to mention that what actually is happening in other local real estate markets can directly affect what happens in your local market.
We in fact just ran into a scenario where a client of ours could only buy a home at a certain price here because the home he owns in Michigan cannot sell for a reasonable price there. They wanted to spend about $600,000, but, bought for $250,000 until the home in Michigan can sell. This is an example of exactly how these markets are intertwined and why in fact real estate is not all local.
To truly understand your local market, you must stay abreast of and understand more than just your neighborhood, town and city market statistics lest someone else who does understand will be the ‚Äúlocal expert‚ÄĚ instead of you. Continue reading this post