By

Sue Martin
Coldwell Banker Myers-Gallagher
361-758-7534

The United States is a very large country. I know, that’s not exactly a newsflash. But with technology making it possible to stay current with events happening across the nation, it’s easy to forget that America is indeed a big place.
So why does the national media talk about the entire country as if it were one real estate market?
Turn to financial reports on networks like CNN and MSNBC and you’ll likely hear about how real estate is in trouble. The report is usually accompanied by images of for-sale signs in Nevada or New Jersey. What does that have to do with Texas or the Coastal Bend?
Statistics can say anything. Reports that discuss a downturn in the real estate market usually employ neat 12-month comparisons. That may be a good way to package data for consumers, but it might not reflect the market realities.
For instance, let’s say you bought a house for $200,000 in August 2005 and watched it appreciate to $250,000 by December 2006. Then the market softened a bit, and by December 2007, it was worth closer to $230,000. If you look at the value of the house since you bought it, you would report it appreciated by 15%; however, between December 2006 and December 2007 the value actually fell by 8%. Which one are you hearing about on the news?
It’s depends on where you’re sitting. The National Association of Realtors in February analyzed figures from 150 metropolitan areas and found that median home prices were falling in 77 markets – and rising in 73!
Global financial advisor Ernst & Young recently announced in its Global Real Estate Market Outlook 2008 that “the distress facing many in the U.S. residential and commercial real estate market is very market-specific; some markets remain strong, while others have weakened."
And as far as Texas real estate markets are concerned, economists Mark Dotzour and Jim Gaines from the Real Estate Center at Texas A&M University don’t think the sky is falling. They report that the recent housing cycle in the state peaked in 2006, but the falloff has not been as rapid or as deep as in other states.
Get the facts. What does all this mean to you? Well, that depends on what you’re trying to do. Sure, someone who bought at the height of a market isn’t happy with even a slight downturn. But a first-time homebuyer might be able to afford a bit more house when a market softens even slightly.
Remember: Texas is pretty big, too. Don’t assume a report about a strong Austin housing market applies to Abilene or even that home prices on the east side of town are moving the same way as prices on the west side.
The best way to learn about what conditions in your market mean for you as a buyer or seller or homeowner is to talk to an expert. Contact your local Realtor and take advantage of his or her market expertise. You don’t need another sensationalist report from CNN; you need facts specific to your situation.
For more information about the current market conditions in our area, I invite you to talk to your local Realtor at Coldwell Banker Myers-Gallagher. Call 361-758-7534, email info@texascoastproperty.com or visit us online at www.texascoastproperty.com .