You’ve probably heard the phrase that real estate is local. But how local is local?
And what does this mean for you as a buyer or seller?
The conditions in housing markets can vary significantly, and generalized statements about what the real estate market is doing can be wrong. Yet we see it all the time in the media reports…it implied that what’s happening in one housing market is the same as another area. And reports about national averages imply the same conditions exist everywhere in the country. That’s just not the case.
You hear that “it’s a buyers market” or “it’s a sellers market,” but the situation is not always that simple in a given area. When you start looking at specific neighborhoods or different price ranges you may see a mix of buyer, seller, and balanced, or normal, markets. I’ve seen it in Carlsbad where I live, and in other communities nearby where I work.
And the local market conditions change over time!
So just how local IS local when talking about the housing market conditions (e.g., average list price, average and median sales price, amount of inventory, time on market, price per SF)? Well, it depends.
It can vary from neighborhood to neighborhood in a particular community such as Carlsbad. One street may be different from another street depending on supply and demand, and what’s popular. One side of a street may have great views, and prices, for example, may differ from across the street even if the houses are the same. What’s happening in new home communities can be different from resale properties in the same general area. Condos and townhomes are different from single family detached homes, and market conditions can vary from complex to complex.
Interested in living west of the freeway in the Carlsbad area or close to the ocean…guess what, the prices can go way up! Want a view? Yep, that impacts pricing as well. And don’t forget about the impact local schools can have on prices and demand. The list goes on.
So what’s the bottom line? To gain a good understanding of what the local market conditions are all about, and how they may impact your buying and selling decisions, you need to work with a Realtor who knows the housing market in the local area.
And you need to understand the particular market that is relevant to your specific search interests, say single family homes under $750,000. Sounds complicated doesn’t it? Well, it can be, and that’s why you need professional guidance and advice. And that’s even more important these days when you have to compete against other buyers, if you want to be successful.
Please feel free to reach out to me at (760) 840-1360 so we can discuss your specific housing needs, timing, budget, and answer all of your questions…and perhaps some you didn’t realize you have. Thinking about selling your home? We can talk about a market and equity analysis, and how to get you home prepared for the local market.