Changes in the Real Estate Market

One of the most frequently asked questions for a Realtor is "How is the Real Estate Market?" I realize that it may sound trite,but it really depends on the area.Recent reports indicate that prices in Phoenix have increased over 50% while prices in Metro Boston is increased a mere 12% over the last year.Does that mean that the Phoenix Market is more attractive than the Boston based market? Like any other question,the answer is relative. Its more inportabt to look at over all price changes. In Phoenix,prices dropped more quickly than Bostons and the upward price adjustment simply responding to market trends. Sharp price increases or declines are key to your plans to hold the property. For an investor or person(s) looking on the short term horizon, price swings paly a much more critical role than somebody holding a home for the long term. While its always nice to be able to purchase a home when prices are relatively low, long term home owners are in a much better position to ride out the swing in prices. Homes are a financial investment as well as an investment in your future. On one hand,a home provides shelter and a place to invite friends to visit. On the other hand,its inportant to realize that home ownership is a finacial investment. Having the financial resources to purchase the home and ability to maintain it( mortgage plus operating expences such as heating,utility and maintance costs) is key to purchasing a home. Each person(s) plan to buy a home should be based on current market conditions, planned length of ownership and ability to purchase the home