In my survey last week I asked if you should ignore national real estate statistics as they are not relevant to your particular neighborhood. It was not surprising it was almost evenly split on whether you should ignore National statistics (52% ignore national statistics vs 48% you should always watch national statistics. This wasn’t surprising but the reasoning from readers was amazing, and I wanted to share below.
Here are the top three responses on whether you should or should not ignore national statistics:
- I’ve been an appraiser for 25 years, and in both local and national levels of work and review. The residential world of appraisal rarely looks beyond local market data, which is unfortunate. Every single property is like a cell to a body. So when the whole is doing well, the individual parts also tend to do well. And vise versa. So looking macro can help identify problems or opportunities early.
- Supply and demand is truly local and regional salary ranges/ median incomes heavily influence purchasing power for residential markets. that can quickly cap the appreciation rate in area despite what the national average might be.
| 3. People move as a herd, national trends impact local markets, I think. Look at the Great Recession, a national screw up impacted everyone. |
Summary
Thank you everyone for your participation and insights in my survey. The insight in the comments from readers was amazing and I hope everyone gained a good perspective from your fellow readers. My key takeaway from the comments is although real estate is local and location is the number one determinant of value, it is critical to also watch the herd and look at what happens on a national scale (i.e. recession, real estate crashes in another market, etc..) to get a good perspective. It is definitely wise advice! Thanks again and stay tuned for upcoming surveys
Additional Reading/Resources:
https://www.fairviewlending.com/the-war-on-landlords/
https://www.fairviewlending.com/house-prices-hit-another-record-should-you-even-care/
https://www.fairviewlending.com/will-real-estate-fall-to-2020-values/
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Glen Weinberg personally writes these weekly real estate blogs based on his real estate experience as a lender and property owner. I’m not an armchair reporter/writer. We are an actual private lender, lending our own money. We service our own loans and own commercial and residential real estate throughout the country.
My day job is and continues to be private real estate lending/ hard money lending which enables me to have a unique perspective on the market. I don’t accept any paid sponsorships or ads on my blog to ensure accurate information. I’ve been writing this for almost 20 years and have over 30k subscribers. Please like and share my blogs on linkedin, twitter, facebook, and other social media and forward to your friends . I would greatly appreciate it.
Fairview is a hard money lender specializing in private money loans / non-bank real estate loans in Georgia, Colorado, and Florida. We are recognized in the industry as the leader in hard money lending/ Private Lending with no upfront fees or any other games. We fund our own loans and provide honest answers quickly. Learn more about Hard Money Lending through our free Hard Money Guide. To get started on a loan all we need is our simple one page application (no upfront fees or other games).
Written by Glen Weinberg, COO/ VP Fairview Commercial Lending. Glen has been published as an expert in hard money lending, real estate valuation, financing, and various other real estate topics in Bloomberg, Businessweek ,the Colorado Real Estate Journal, National Association of Realtors Magazine, The Real Deal real estate news, the CO Biz Magazine, The Denver Post, The Scotsman mortgage broker guide, Mortgage Professional America and various other national publications.
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