Anytime you see a chart or a graph like this, know this…. On paper you can make Napalm look like an antibiotic!
People that dabble in this industry marvel at such graphs. People that do this for a living that don’t understand such stats and graphs are always looking for that silver lining, that glimmer of hope that the hard times are over or are about to be. Here’s the deal, what’s going on in Wyoming doesn’t impact in the slightest what is going on in the Georgia.
Wow, did you see this? Average home sale prices are up 4.5%. So that must mean values are coming back right? No it means the average sale price of homes that sold in that time frame were higher vs. the sales prices of the homes that sold during another time frame.
If in August of 2013 there were a lot of $200,000 houses that sold vs in August 2014 there were a lot of $300,000 houses that sold do you see how that would dramatically impact a bar chart or a graph? The cool thing is that none of that matters, it’s just filler copy for radio, TV and magazine articles. What impacts your home’s value more than anything else is this… What are you neighbor’s houses selling for? What’s going on in your subdivision? Did a homeowner three streets over destroy his house before the bank could foreclose on it? When that happens it affects your home’s value. Then it impacts the subdivision and listen, you can fix a house but not a subdivision.
There’s a lot more to it than a 30 second news article you hear or see.
This is Reggie Moon Owner/Broker of Eclipse Atlanta Realty.
Remember, there’s an easier way.