Market Momentum…Natick, Wellesley, Needham

Clients keep asking…

Should I buy now?empty-dollhouse

Should I sell now?

When will the housing market go up?  Go down?

Is the house I want to buy at the very lowest it will go?

Can I sell my house for close to the profit I want?

Will the market go back to what it was 2 or 3 years ago, in the coming year?

The media knows a good story when it has one.  Whip people into a frenzy, keep casting all business information in a bad light, and end each story with a message that the sky is falling.

Journalism… should be presenting a balanced look at the facts.  Media competition oftentimes results in no balance and no facts.  Preying upon fear and other emotions will result in ratings increases, so we are bombarded daily with the grist mill of bad news.

And lost in the competition for ratings supremacy is… a fair picture of the facts.

Looking at the facts, translates to looking at a snapshot in time.

So let’s face certain things…if we all were to buy our homes at the lowest price, and sell at the highest, we’d find ourselves in a perfect housing world, or so we think.

If you are an investor, then that’s your criteria.  But every successful investor will tell you that the reality you strive for tends to be not at the extremes, but rather somewhere in the middle.  And then their investment pays off.

If you’re going to live in the home, then the criteria shifts…because it is YOUR HOME.

So..are people continuing with their plans?  Are houses being sold? Are houses being bought in our area?

Are people living their lives?

Let’s look at the current real estate market conditions in Wellesley, Needham, and Natick.

What has happened in the past 30 days?…

* Single Family Homes Gone Under Agreement 41

* Single Family Homes: $SOLD 57

This represents a 12.3% decline in properties SOLD, a 6.2% decline in the average sales price.

There has been a 4.1% increase in the number of days on market; for the period Oct. 24 – Nov. 24, 2008 as compared to the same period last year.

Dow Jones Industrial Average, Oct '07

Image by zcopley via Flickr

Given the significant financial roller coaster of the past 30 days, the real estate performance for Wellesley, Needham, and Natick is not bad,… not bad at all.

If your investment was in the stock market for the same time period, then you’d be facing a 35% loss in value based on the Dow Jones Industrial Average.

And…you can’t LIVE in the Dow.

Historically, housing prices have always rebounded.  However, if your own house is going to be worth more, then so is the new house you intend to buy.  You’ll sell for more $; and you’ll buy for more $.

It’s safe to say at this point, that the housing market is a whole lot LESS VOLATILE than the stock market.

And if you sell for less today, or in the next few months than you might have comandeered 2 or 3 years ago, you will also be BUYING FOR LESS, the property you’ve had your eyes on.

There will be no specific day when it will be announced that TODAY IS THE BEST DAY TO PURCHASE/SELL A HOUSE.

If you’re waiting for that, you’d be better off buying a bridge in Brooklyn

But if you’re looking to buy a home that will increase in value over the next 5 years or so, then follow your desires because I can say without a doubt that the homes that are bought this year will most certainly be worth more 5 years from now.

So long as the home you purchase is priced to reflect today’s market conditions.

And you need to trust and rely on your realtor to tell you if a home is priced right.

So let’s talk…

I’m at your disposal.

– John Prescott

508 – 523 – 9252

JOHN PRESCOTT

BostonKayakGuy

Top Real Estate Agent for more than 14 years, serving the real estate needs of  Wellesley, South Natick, Weston, Needham, Wayland, Newton, Framingham and other MetWest communities.  www.johnprescott.net

JOHN PRESCOTT

Vice President

Century 21 Commonwealth

508-523-9252

BostonKayakGuy…The MetWest Scene

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