Is Real Estate Hot or Cold?
I love helping buyers find the right first home. In fact, that’s about 90% of my business – assisting First Time Home Buyers with the process of home buying. But often times I get strange questions from young buyers; those who are astute and listening to the news about the Housing Market.
They ask me, “Have we hit rock bottom?” “What if the Prices dip lower still?” “I heard that Banks will give away Foreclosed properties, is that true?” “The news said the U.S. Market is still in bad shape, are they right?”
And that’s when I have to stop them. Not because they said anything wrong or offensive, but because any news about the “National Housing Market” does not have a thing to do with the local Twin Cities Market.
Alec Grebis who writes a ton of First Time Buyer Loans wrote a great article on why you should not listen to reports on the National Average, or Housing News about the U.S. as a whole.
His basic analogy is this:
You wouldn’t listen to a statistic that said “The Average High Temperature in the U.S. was 58 degrees today” because that would tell you very little about what the weather was like where you live.
The same goes for housing. San Francisco Real Estate and Fargo Real Estate have very little to do with Farmington Real Estate, or even Fridley Real Estate.
It’s a very good analogy, and if you want to read the whole story, visit the First Time Buyer Loan Blog.
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For me, I guess the real estate these days are hot.. its obvious on new constructions of condos, houses and other properties in different states..
-David