Every week a new report is released that talks about the national housing market. It’s up, it’s down, predictions of doom and gloom. These indexes measure housing statistics using a number of indicators and interestingly enough, sometimes the people publishing the reports have agendas of their own. For example, the folks publishing the Case Shiller index are making a living ……. managing hedge funds! That’s right, the same type people who pushed the sale of all those bad mortgages (the Subprime Crisis sound familiar) in the last few years also make money on the back end, by discouraging real estate investment in favor of investment in the stock market! After all, investors have to put their money somewhere and if the hedge fund managers discourage investment in real estate then they end up putting their money into accounts managed by the hedge funds. A weird, twisted loop to be sure. So, who do you trust?
While you can see how well those stock market investments have done recently and can probably guess my opinion of the value of real estate advice from hedge fund managers, I guess it is all a matter of perspective. You could say I am biased, because after all I do make a living selling real estate. In the end, you the consumer are left making an individual decision, based on your individual needs.
The truth of the matter is, real estate trends only matter to the average homeowner on a local level. That’s right, if you are buying or selling a home in Central Pennsylvania, all you should care about relating to home sale performance is the market here in Central Pennsylvania. Major metro areas of other states do not impact you, nor do trends in those markets.
The National Association of Realtors recently released a study comparing the four major price indexes. They are the National Association of REALTORS® Median Sales Price, the Case‐Shiller Index group, and two Conventional Mortgage Home Price Indices, one by the Office of Federal Housing Enterprise Oversight (OFHEO) and one by Freddie Mac. You can view the complete study information here in the link below:
NAR Home Price Index Comparison
The study clearly illustrates just how subjective these number are. So remember, local decisions don’t require the latest info from CNN, Fox, PBS or MSNBC. They require knowledge of the LOCAL market, so you the consumer can make the right decision for YOU.
For information on the local market and how it may or may not apply to your specific needs, call me. We’ll figure it out how it applies to you together.
As always, you can call me Direct at 717-371-0557 or at the Office 717-490-8999 or email me at Jason@JasonsHomes.com!
Your Friend in Real Estate,
Jason
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