We subscribe to the free newsletters from The Oxford Club and particularly enjoy their insight on investment markets including their takes on housing. One particular newsletter we just received:
Friday, August 17, 2007 Issue #702
The Home Seller "Delusion"
by Alexander Green, Chairman, Investment U
Investment Director, The Oxford Club
One -- areas that are making up all of the bad real estate news tend to be the areas that had the outrageous appreciation rates in the past 4 to 5 years.
Two - Alex correctly points out that real estate is local. What's happening in Miami has little to do with Chicago Real Estate. However, despite the fact that Chicago is not even in the top 10 cities for foreclosures according to Realtytrac, you would think so with some of the news stories in the media.
Three - "Real estate conditions always vary from one locale to another. While home prices are cooling off almost everywhere, some places are holding up better than others. And prime properties in any area will hold their value better (and sell quicker) than inferior properties." Key statement -- it makes much more sense to buy a property in a community such as Wynstone in North Barrington priced for the same amount as a home in no community surrounded by homes priced much lower.
Four - Real Estate sellers may be making choices when to comes to selling real estate on bad information. What sellers could have sold their real estate for last year makes no difference on what real estate buyers will pay for it today. I've often said this and I'll say it again, price histories from 2001 and even 2005 have zero and I mean absolutely zero consideration on what you should be listing Chicago or Barrington Illinois real estate for today.
For a current analysis and an absolutely free market evaluation of what your Barrington or Chicago real estate is worth today, please visit our Free Chicago Home Value Request page.
Date: 2007-08-18 11:56:05