The talking heads will tell you: "The sky is falling, the sky is falling!" Raise your hand if you are tired of tuning into the media only to be subjected to the dramatization of the housing market!
While it is true that the market has shifted and many areas have been impacted on a large scale, it is also true that there are plenty of areas that are holding their own in these tough times. A good portion of Western Massachusetts is one such stronghold.
While researching for market analyses, I began to notice that my graphs were all showing that market values in my area were steady. My curiosity piqued, I decided to do some research in my office and on-line. While not a scientific study, my results were conclusive enough to cause me to believe that my instincts were correct: the sky WASN"T falling!
From an article in the Springfield Republican, February 10, 2008: "Housing Prices Holding, Despite Turmoil In Market. …the national trend of falling prices has not hit the Valley as a whole. Median home prices in Franklin, Hampden and Hampshire counties have actually held their own and even risen a little over the last few years…Donald E. Thompson, president of the Realtor Association of Pioneer Valley, predicted sales in the region will remain level in 2008 with sales last year. "
Upon reading this I continued to search for others who felt as I did, while it was a buyer's market and the time on market had increased, home values were not dropping at an alarming rate and in some cases, not at all!
From wwlp.com: February 27, 2008 6:13 p.m.
SPRINGFIELD, MASSACHUSETTS (WWLP) There's good news for home sellers in Springfield. In the midst of a national housing crunch, home values are on the rise. When it comes to housing appreciation, Springfield ranks 141 out of 291 cities. That's according to a new report by the Office of Federal Housing Enterprise Oversight.
Florida and California are the worst performers in this report, with homes losing between 4 and 6 percent of their value.
"Where some places have decreased, such as Florida, California and Vegas, Springfield and the Pioneer Valley have remained a very good place to own a home…"
I have been in real estate since 1988 and have worked through several market corrections and housing drops. This current situation, while not great, and certainly difficult for all, may not be as severe as your media leads you to believe. Remember, all real estate is local and the national media is not, so their gloomy forecast may not apply to you, as I feel it does not apply to my area.
