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 MSmartt@jps.net.
Thursday, March 27, 2008
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