Pick up any Chicago newspaper today and undoubtedly you can find an article about the state of the real estate market and the impact of the Chicago foreclosure market on prices. As a ?traditional? buyer, you need to be really careful about the statistics the news media is quoting.
?
1)????? Prices are hyper-local:
Whereas some areas have been particularly hard-hit with foreclosures, other areas have not. This may even true of condo buildings right next door to each other! Whereas some condo associations are in real trouble and have low owner occupancy rates (see my article on owner occupancy rates), other associations are financially sound and not experiencing many foreclosures at all! And, yes, the prices in one building vs. the other will be severely impacted by the Chicago foreclosure market. The point being is that you must do your research. Reading a generic article in the newspaper will hardly ever give you the information that you need to make a sound decision.
?
2)????? Has the Chicago foreclosure market been broken out of the data?
Sometimes, when the news media comments on pricing trends, it is not clear whether or not they have removed distressed sales from their statistics. It is important to know because the typical buyer is NOT buying a distressed property. This is the purview of professional investors and contractors. As an ?average buyer? (as if there actually IS such a thing), it is important for you to know what the TRADITIONAL market is doing. Are prices continuing to decline or are they starting to come back? Breaking out the data of the Chicago foreclosure market from the traditional market is important information for a traditional buyer to have.
?
3)????? Statistics are historical ? they do not report what is happening right now:
Markets can change quickly. Those of us who have been in the industry for a while have seen this happen ? and never cease to be amazed by it. A shift in the market can sometimes feel like a faucet turning on or off. By the time the data shows the shift, many times the very best opportunities are already gone. There is no way to time these shifts. You simply have to be in the right place at the right time. But one thing is for certain: if you find yourself lucky enough to be on the right side of a market shift, waiting to take advantage of it until the stats prove you right is NOT to your advantage!
?
4)????? What is the reporter?s agenda?
There is an old saying amongst bean counter types that you can prove just about anything you want with numbers. What they mean by that is that the reporter will select what data he wants to report based upon the point he is trying to make. The National Association of REALTORS? obviously has an agenda to report favorable housing data. And yet, they take great pains and pride themselves on providing objective data. Major governmental agencies, economic ?think tanks? and even large institutional investors depend on objective data from the NAR to make projections, make investing decisions and even to implement government programs. And so the NAR is particularly diligent in making sure their data is accurate. Yes, the numbers are the numbers. But what they mean and how you choose to interpret them depends on what it is you are trying to prove.
?
Bottom line, if you need help interpreting the Chicago foreclosure market ? and figuring out what is happening in the ?traditional? market ? your best bet is to contact your favorite real estate agent and ask them to help you gather the numbers and interpret the data. Then go ahead and make your own decision about the Chicago foreclosure market and what it means to your decision to buy.
new york times square jaws first night ball drop dick clark new years eve brock lesnar vs alistair overeem times square new years eve
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.