Pricing Real Estate

Home values always tend to mirror the local economy.Home prices will rise and fall with job market and the rest of the economy.While home prices did increase much faster than income during the period from 2000-2007,there is a definate relationship between enployment and home prices.It has also been said that rising home values usually will herald an improving economy and home sales tend to be sluggish in poor eceonomic times.As a Realtor,I have seen many potental home owners put off a home purchase because of un settled economic times.In turn,home owners tend to put off listing their homes for sale because thet may loose money on their investment or not make enough money to buy a new home and/or fund their retirement plans. Clearly the two sides of the real estate transaction are part of the pricing of a home.
Over the last few years,I have been asked by a home owner to market their homes for sale.The location of the home,its condition,size and amenaties always play a role in its pricing.While home values usually rise over time, the point in time that a person wishs to sell their home helps to determine its eventual sale price.While many communities have seen dramatic price declines over the last 2-3 years some communities have seen values stay steady over this period or even have seen a modest price improvement.Its important to determine how the homes in your community have faired over the last few years.As a Realtor,its part of my job to help make sense of home values in the current real estate market.Most home buyers have an understanding of home values and bank appraisers usually are taking a careful look at current home values and the direction of the housing market.