Thursday, March 27, 2008

My Favorite Real Estate Statistics

The media is full of information and reports and statistics and projections and forecasts about the real estate market. And, it can get a little confusing. Is it a crisis or a correction? A meltdown or a slowdown? Is it a good time to buy or a bad time to sell? And, when will we hit "the bottom"?

I just returned from another terrific 2-day real estate seminar with Brian Buffini, and thought I would simply share some of my favorite statistics from the event and let you decide where the real estate market is.

*About 1-2% of all homes are in foreclosure. Numbers are higher for certain areas (like nearby Stockton). And 30% of all homes are free and clear of any loans.

*The market is currently down about 13%, but it went up about 38% between 2002-04 and then another 17% from 1004-06. So, is this a correction or a freefall?

*It is projected that there will be 4.5-5 million real estate transactions this year, making it one of the top 10 busiest years in history.

*The average homeowner's net worth is $171,000, which is more than 40 times the net worth of the average renter.

*40% of consumers have never run a credit report on themselves. 40% have also never done a monthly budget, and 40% don't pay off their credit cards each month. Are these all the same people?

*In 2000, homeowners took out $26 billion in equity out of their homes. In 2004, that number hit $139 billion. 2005 was $450 billion. And, in 2006, that number made it to $620 billion. 16% of the money taken out of home equity was used to pay consumer debt and another 16% of it was used to buy more consumer goods.

So, what do you think the national numbers mean? And what is happening in your neighborhood? I know the market is still quite strong here in Rockridge and the surrounding areas. If you have questions about the market or want to know more, just let me know. I am always happy to help. I can be reached at 510-547-5970 x57 or