Real Estate Darwinism

There's a saying in the news business, "If it bleeds it leads", meaning sensationalism sells the news.  The press isn't interested in hearing that the real estate market is doing well in some places.  It's not news to them. If you look closely at the statistics being used by the media, they flip the percentages showing the negative above the positive. The press in the San Francisco market is guilty of this big time and I see it everywhere I look.

What do I mean?  Did you know that 2007 is on track to become the 5th best year in the history of real estate?  How can this be, you're saying?  It's estimated that over 5.5 million homes were sold during 2007 - a year that began the melt down of the mortgage industry.  The average sales price in the US has gone up consistently. Did you know that through November 2007, 95% of all mortgages were current in the United State?  But that's not news.  It's more exciting to say 5% of mortgages are in default.

Real estate markets have cycles of about 10 to 15 years and most real estate goes up over time.  Take a look at the past three decades of data courtesy of NAR and you'll see for your self.

In each of the past three decades, we have seen low and high numbers of homes sold.  The 1980's never quite recovered to the same level as the end of the 1970's.  But, by 1996, a real recovery took place.  During those decades we suffered recessions, rebounds, and even some inflation, but housing prices were able to ride it out and generally provide the owner added equity.  What you must remember is that a house is your home, and if it gains equity, great, but if it doesn't, you still have shelter above your head and you own it.  You can take the tax deductions for the interest you pay on your loan and for property taxes, and make your house all yours.  What else can you buy that affords appreciation over time?  Not much.

The only way you, the consumer, can be sure you are getting a fair deal is to use a first rate Realtor.  We're out there for you.  We can assess the local market for you.  We can help you find the best home for your budget and make sure you are working with a reputable lender.  Top agents work with the best in the industry and we do not work with bad lenders, bad title companies or bad brokerages.

Buying a house is the biggest investment you will ever make in your life. You owe it to yourself to work with the best people to be sure you are not taken advantage of, and are protected.  Ask questions.  Keep your eyes open.  Educate yourself.  Right now is a good time to enter the real estate market to buy a home to live in.  Money is available at amazing rates.  Just stop reading the newspaper, watching the news on TV and listening to the radio.  Look at the statistics.  Raw data does not lie. Talk to your Realtor and find out for your self.