Market data, advertising, public opinion, the weather, the federal reserve, crime & unemployment, the presidential election, city planning, conversations in the coffee shop….
It is a challenge to know exactly what will happen in this real estate market and to accurately predict the future growth & value with any real certainty. The best we can do is speculate based on the before mentioned list of indicators. At least, that is how I stay in touch with what is happening.
From this set of eyes, the real estate market is ripe with good opportunities for those who look in the right places. From one vantage point, the market is stable with some parts of up scale neighborhoods seeing appreciation in values. This is of course from the vantage point of a real estate professional that looks only at the data from the local MLS and sometimes the tax records. The reality is that the foreclosures and short sales don’t often reach the open market before they trade hands and because of disclosure statutes, we won’t see that data and how it really impacts the actual incline or decline in neighborhood values. Fair Market Value is only what a ready and willing buyer will pay for it. The lack of actual data can support growth but also cause seller’s to walk away with bigger pockets than they really should.
Value is in the eye of the beholder, no matter how stigmatized they might be. That is of course if an appraiser agrees and can support the vantage point.
There is always money to make in real estate. The market dictates where to look and how to make the most of the conditions. In recent years novice investors read a book or attended a seminar and had immediate success in flips, foreclosures and passive-income producing investments. Tough market conditions and lots of hurting real estate related professionals make the fly-by-night investors leery and leave room for the veterans to clean up on the best opportunities.
Market data & public opinions startle the general populous into inactivity and passivity. The right approach to investing in today’s current conditions can result in tremendous gains and equitable positions.