Is There Really Any Such Thing as THE Market?

This morning I was listening to a podcast from the President of the National Association of Realtors. He brought up the phrase “all politics is local,” then continued to say that “all real estate is local.”

I started thinking about that. He makes a very good point. The national media talk about real estate as if there is only one market in the nation, which is very, very wrong. Even within one state, there are many different markets.

Comparing large markets to other large markets MAY have some benefits. But thinking that the much more common medium or small markets are part of those same comparisons will lead you astray.

When I am asked, “So, how’s the market?”, the person asking doesn’t want to know about New York or Dallas, or even Birmingham. He is asking about the Shoals. He is asking about what is happening in his own back yard.

Reports that come through the national media are looking at statistics gathered from many different markets. It does not take into consideration that one area can vary widely from another.

In the Shoals area (Florence, Muscle Shoals, Tuscumbia, Sheffield, and the surrounding area) property values haven’t changed that much. We have had fewer sales this year than last, but that drop is concentrated in homes under $150,000. In homes priced higher, there has been an increase in sales at most levels.

Lesson learned…instead of listening to the national media, contact a local Realtor to find out about the market in your back yard.