I love watching the news... but when they talk about the real estate market, I cringe. I like to hear the national numbers, but I also know that they are just a framework for a smaller discussion. Yep... a smaller discussion.
It matters what the overall market is doing, but it's not nearly as important as what is happening in your neighborhood. It matters what is happening in Georgia, and the Atlanta Metro market, but not nearly as much as what is happening in your specific city. Real estate prices and demand react to specific local issues much more than to national trends. In fact, the national trend is just a compilation of local and hyper-local trends. What the national market does is create a headwind or a tailwind. That's about it.
Here locally, we look at things like...
- changing employment statistics
- companies relocating into or out of the area
- school performance and trends
- tax burdens
- quality of local governmental services
- proximity to recreation and entertainment
- ease of movement (commuting, shopping, etc)
As we see these things change, we see the market move in one direction or another. A prime example at the moment is the City of Atlanta schools issue. It is possible that the Atlanta City Schools could lose their accreditation. If that were to happen, it would drive down the price of most of the homes served by those schools. The price would be driven down because there would be a lack of demand on the part of buyers, combined with an increase in supply as sellers seek to move to districts without the same problems.
Gwinnett County has one of the lowest unemployment rates in Georgia, below the national average. But there is also a tremendous overhead of foreclosure action. We also have one of the highest performance school systems in the region... and reasonably low tax rates.
The market in Miami or Las Vegas doesn't have an effect on what is happening in Georiga, much less what is going on with real estate in Gwinnett County.
Explaining Market Reports on LaneBailey.com
Unless otherwise noted, all content of this blog is the property of Lane Bailey, ©2012 Lane Bailey.
I'd love to hear from you...
This is so true, Lane, in every local market. What's happening in New York or in Washington has no bearing on my local market, and as you've pointed out, things like schools, tax burdens, and employment are the real driving factors behind many real estate trends everywhere.
Hi Lane,
Good info, especially the distinctions your pointed out, e.g. the differences between subdivisions for one.
I like how you integrated personal video into your post, Lane. Your point is so important. People don't realize that the market doesn't just change from state to state or city to city but actually from suburb to suburb.
Lane, LOVE the video. That was great. You made it very clear as to how important Hyper-local is to a market. Way to go my friend!
Lane, Real Estate has been and will be LOCAL, we have even in our local areas MICRO MARKETS, the National News ALL it does is gives us TRENDS, I am with you 100 per cen you are so spot on with this post.
Good Post Lane. Made me feel much better. I'm not a creative writer, so my posts are usually market stats.
I so totally agree with you. I would love to send my market stats to Meg Kelly on FOX news...everything she reports is negativity about the market. Suggested....
Virginia * having gone from PURPLE to RED has a very strong economic base AND educated workforce which makes it a prime location for new start companies. Our state government has a strong investment outreach program for new businesses coming into the state!!!
I'm glad my Lexus is not on either list! It is not boring....,I'm listening to the Michael Connley book THE REVERSAL on my cd so I can't wait to go to work EVERY day!!!
Lane - everyone is interested in the "market" as a whole and that's what they get from the news. Unless you're selling or buying most people don't get to granular. Do you think buyers and sellers are beginning to understand how market stats differ from county to county, area to area or even in their subdivision?
You've nailed it Lane! Great way to get information out to your local community and great info for everyone to hear about how the markets info should be dispersed! Love the video!
The media reports on the markets that have the most media.
Great post, Lane, and yes, all real estate is local.
One of the issues that we especially have to watch with great vigilance in Georgia and North Carolina is the accreditation of our schools. Although here in Burke County NC we are in danger of losing our accreditation over the behavior of our FORMER School Board, I know this is not just a Burke County issue. Wasn't this also true in Clayton County GA? Watch what's happening in Wake County NC (Raleigh area). And also, as you mention, the Atlanta GA schools.This is an undercurrent that, though local now, I think we'll find spreading. I fear how this will affect the local real estate market short- and long-term, but I really fear the effect it will have on the education of our children and our workforce.
Lane, what a unique and interesting post. Very interesting fact about the impact of school accreditation on real estate values and the trickle down effect of those schools losing their accreditation. I thought you did a super job!
Hi Lane, Congrats on the feature and a great job with the video discussion on market reports.
Like most thing well thought out and clearly expressed it sounds like common sense. But common sense only becomes that when the observations are made and clearly expressed. You've done a good job of that Lane, thanks.
Hi Lane -- Well said, and it's great that all real estate is local, and so much of the media doesn't do this topic justice when they simply report national stats.
Lane,
Great video and discussion points. Thanks for the viewpoint.
Hi Lane. I like how you are incorporating your videos here at Active Rain.
Hi Lane,
Nice mall! Looks like one of ours in Westchester. Malls aren't local - but real estate is. In our area a block or two makes a big difference! So many people are asking me why they can't find what they want where they want it...Because everyone wants it where they want it to be! Schools and transportation to the city are the big thing here. If you've got banner schools and an easy commute you are golden...if not, the market is still bad.
Lane, I completely agree with you. The Dallas metropolitan area, and Texas as a whole, are also fairing better than the national stats. We often face an uphill battle when discussing the local market with buyers.
Lane, what a perfect place to do the market report video for your hyper local area of Duluth, Suwanee and Lawrenceville! You point out so well how the market changes from community to community and price range to price range. Honestly, you could syndicate this post and fill in the blank for other cities, communities, etc. :)
HA! Funny I came across this! Number one, it's down to MICRO local in some instances! Also, it bugs me to no end to see individuals who are an "expert" in some way, shape, or form speak from the realm of NATIONAL television and not be abundantly clear that they're not quoting for the ENTIRE country, that their best bet is to consult with somone in their own local market to get the REALT story on buying and selling where they live!
I think they pick and choose the reports that sound the worst however that is local or national! Local is where its at...thats why there needs to be videos like this.
Lane, the mainstream media isn't going to give us any good news. Great job with this post and congrats on the feature.
Exactly! And love the video.
Every neighborhood is a little real estate market. I make a point of showing neighborhoods to out of town buyers, finding out what neighborhoods they like, then sending them the listing reports for those neighborhoods only. I tell them that when they see the prices go down, then the pendings start going up, get out your check book and watch for the floorplan that they like. Cause that neighborhood just adjusted and will either stay flat for a little while, or start going up.
Great job Lane! I was talking to a builder friend the other day and she told me the she heard on CNN that she should wait until Spring to put her home on the market. I told her CNN doesn't sell houses and that people are buying now. You did an awesome job of breaking it down.
You are right Lane and Gwinnett is different than Buckhead which is different from South Atlanta too.
I cringe, too when I see those segments. How realistic are they depends on where they are getting their data.
Lane, you summed up nicely why real estate is local. Local issues can definitely impact the market in a specific area.
It was a please to get to hear your voice, Lane! Great use of video reporting - and you're right about HYPER local.
Lane,
Good points. it's always interesting to see that one area does reasonably well, when another closeby is truly HOT.
Brian
Lane:
Wonderful post. And of course you are so right. By the way, I love your video. Do you give lessons? I need help with my video. Mostly, I don't focus on me but on the subject of my video. As a newbie, I am still working on even attaching my videos to my blogs
It is good to have overall market knowledge but you must master the mico market...know your numbers !!
Once again it is all about LOCATION LOCATION LOCATION. What is happening around the country may take time to hit your particular neighborhood, or may hit first.
Lane -- This should be featured on the national news so consumers understand the REAL story on real estate markets.
Lane,
Loved your video. So true. Many real estate agents also do not know that mortgage lending is affected by the local real estate market as well.