It’s easy to get caught up in the news about real estate trends. TV, newspapers, bloggers and others report about house prices in the east, west, cities, and how they are increasing or how the bubble is about to burst etc.
Don’t let yourself get all caught up in this.
In this modern information age, you can learn just about anything on a particular subject. While access to information is usually a positive development, things can get a bit crazy if you get overloaded with it. Look long enough and you can find two pieces of information offering exactly the opposite views on a subject. Obviously, that doesn’t really help you make a choice.
In real estate, the information offered in the media is usually uniform. For the past many years, everyone with a pulse has reported the real estate market has been hot. Now, many of these same pundits are suggesting the market is cooling off. Some are even predicting a crash in the market.
As a potential buyer or seller, how can you evaluate the information being reported in the media?
The simple answer is you should ignore it.
The problem with these reports is not the accuracy. Instead, the problem is they are reporting national trends in real estate.
National trends, while accurate, have little or no application to our specifics in little old Yorkton, Saskatchewan. Consider the following if you do not believe me. The real estate market for the last few years has been reported as hot, hot, hot.
In Yorkton, however, the market has actually just shown a moderate increase over that time. If you were considering buying or selling in Yorkton, the information being provided for national trends likely would not apply for making smart decisions here in Yorkton.
The only real estate trends that matter are those in your local markets. Never rely on national data for local decisions. National data is skewed heavily on huge market gains in Toronto and Vancouver where the market is just plain silly.
If you are considering buying, you have to be very careful when considering real estate trends. If it looks like a seller’s market in your area, you may make the mistake of not buying. Even in a seller’s market, buying a home is better than renting.
Every day you are in the home is a day you are growing your personal wealth through equity accumulation. Don’t stay out of the market simply because you feel it isn’t the right time.
Evaluate your personal information closely. Maybe it’s just time to buy that house, or you are moving and you have no choice, you need to sell. Make your decisions for price based on the market where you live. It doesn’t matter how much your house would be worth in Canora, in Saskatoon, or in Regina. It’s worth what the market says it’s worth where you live.