In today’s housing market after the Great Recession this question seems to be on almost everyone’s mind. So what’s the answer?
Well, you read that according to the National Association of Realtors as of mid-May 2015, home prices nationwide on average are up 7.4% in the past year. What we real estate professionals hear time after time is that a rising tide raises all boats the same and thus it seems that each homeowner feels that their home is worth 7.4% more than at this time last year.
But the tide does not work that way. We have the Bay of Fundy in eastern Canada where the tides can vary by as much as 70 feet and then there are areas such as the Mediterranean Sea that have very little difference between high and low tides.
Here are some current specific “tides”. Reno-Sparks Nevada, up 17.6 % in the past year, Cumberland Maryland, down 12.0%, Toledo Ohio, up 16.2%, Stamford-Norwalk Connecticut, down 6.1%. And so on
Here in Lane County the “tide” (average home sales price) is up overall 4.2% in the past year. But the variation ranges from a 33.9% increase in average sales price in the Mohawk Valley to a 28% decline in a Florence area. In Eugene neighborhoods, from a high of 7.8% to a low of 1.4%. In Springfield, from an 8.6% increase to a low of a .6% decrease. And for the nearby rural areas a 33.9 increase to a 0.1% decrease.
Thus the real question is what tidal zone are you in? That varies by state, county, city, general neighborhood, specific neighborhood and specific location in the neighborhood. Only then do we delve into the amenities of the specific home.
Here in our Eugene-Springfield OR market some types of homes in some specific areas are literally on fire pricewise and yet just short distances away prices are still declining.
In a fluid market such as this it is easy to leave money on the table if you are in the former group. And in the latter group, with proper presentation and marketing the damage can be mitigated.
And yes this is a call to action to you to contact your favorite Realtor if you are considering purchasing, selling or just planning for the future. Our consultations and comprehensive market analyses are free and we provide them for sellers considering selling their home, when a buyer is considering purchasing a home and if you just want to know the value of a home.