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Real Estate is Local: How is your housing market fairing? August 17, 2009

Posted by John Watch in News Feed.
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Daily real estate reports have been released, speculating on the housing market and when it will reach a bottom in values. Some reports declare a bottom in the near future, while others see a much more prolonged recovery in real estate due to foreclosure and unemployment. But real estate remains local, as well as cyclical, seasonal and emotional. The economic crisis has hit some markets harder than others. With this in mind, how can one predict a home values bottom for the entire housing market? Property data analysis must reflect macro and micro real estate trends, like this New York City Real Estate Report.

Coupled with public records, (as well as the Northeastern Queens Report), this report found that NYC home values as a whole were affected by the real estate crisis. Also, the city saw a diminished level of sales activity so far this year, well below the peaks of previous years. But when analyzed deeper, Manhattan two-family buildings and buildings with a residential unit and stores are in demand with increasing values. So is the real estate crisis affecting this market the same way that it’s affecting others?

The same can be said for many different markets of the country. While tools like median sale price are essential, painting the market with broad brush blurs the deeper analysis. Startifying the data with price per square foot analysis gives a more comprehensive view of the market.

What does your market look like? What does your location say about the housing market? How is your property holding up?

For property search on records, ownership, sales data  for insurance underwiritng, fraud investigations and valuation, CLICK HERE.

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Comments»

1. Cary Real Estate Blog - August 18, 2009

Great article! Thank you very much!

Regards

2. marvin - August 19, 2009

The obama bailout plan has been around for a time now and we can see minimal effects of it on the economic crisis. But I’m still optimistic that the plan will work to help many homeowners who are on the verge of losing their homes.

3. Mattwi - August 19, 2009

Am of the opinion that the housing market is a finite thing so a slow down was always bound to happen.
The housing market in the main, is governed by 2 things, house price and buyer’s wage. In the UK, the average house price is £200k approx. and the average wage is £25k roughly. The standard lender criteria over the years was to lend 3 times joint wage. This didn’t really change until the housing boom, and look what happened, and now banks have clamped down on lending, most lenders will not give more than this now. SO, the average couple has a buying power of £150k. Taking into account existing buyers will already have some equity, then it seems fair to say that house prices may have reached their bottom, but we can’t expect prices to go up again because your average new buyers still won’t be able to afford to buy.
Also, experience bears this out – as an insurance broker, we are currently making a mint with our unoccupied property market, compared with 2/3 years ago.

4. John Watch - August 19, 2009

Marvin

I am not supporting the governments plan to help the real estate markets (we offered an alternative thought on this called Mortgage Assistant Program, http://www.accuriz.com, Real Estate Reports). But I will state that any internvention will take more than 3 to 4 months before true recovery begins. The government plan helped stop the free fall, but it will take another 3 to 4 years to see a complete recovery.

Mattwi is correct, there is a direct correlation to Income and Values. In the United Stated banks did not get away from this, but Mortgage Bankers did. There is a difference between the two.

5. Jack Tabone - August 30, 2009

The Phoenix market has trickled up, but I’m afraid that until America gets back to work, recovery will not occur no matter what.


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