Real Estate is a Long Term Investment by Gregg A.
Mazile, Licensed Real Estate Salesperson
The
news media is all abuzz these days with information about what is happening in
the real estate market. But if you rely
on your national newspaper or TV network to tell you whether now is a good time
to buy or sell, you may be missing some great opportunities. To get the proper perspective on the value of
real estate, you have to go right to the source, and that means talking to a
REALTORÒ in your local market.
While average
sales and prices help us identify trends, the fact is all real estate is local
– conditions vary greatly from one city to the next. Unfortunately, that news is largely
unreported.
Here
are the facts on three popular misperceptions in the real estate market:
Misperception: No one is buying a home, and home
prices are falling rapidly.
Fact:
According to the National Association of REALTORSÒ, home sales are
expected to reach about 5.5 million this year.
Fact:
While it’s true that home prices are down slightly from last year, the
median home price has increased. And,
two-thirds of metro areas showed price gains last quarter.
Misperception: Foreclosures and delinquencies continue
to rise rapidly in every state.
Fact:
According to the Mortgage Bankers Association, four states – California, Nevada, Florida and Arizona – are
responsible for most of the increase in foreclosures.
Many
states including New York have seen a decrease in rates of new foreclosures in
the second quarter.
Fact:
The reasons for foreclosures vary from state to state, but many lenders
have pulled back from the market across the board, forcing buyers to sit on the
sidelines.
Misperception:
Stocks are a better investment than real estate.
Fact: Houses are not like stocks. Home ownership is designed to build wealth
over the long term. Studies show that
homeowners have an average net worth of $184,000, compared to just $4,000 for
renters.
Fact: Owning a home also helps strengthen our
families and our communities. You can’t
put a price on that.
When
you consider the facts, it’s easy to see why millions of people are choosing to
buy a home this year. There are some
challenges in the market, but overall there are many more opportunities in
local markets today as real estate continues to be a solid long-term
investment.
Members of the Long
Island Board of Realtors are working in several ways to help you understand
conditions in your local market and take advantage of the opportunities to
invest in real estate:
Ø We provide consumers with the latest
information on home sales and prices and what factors are likely to drive the
market in the months and years ahead;
Ø We can help educate prospective home buyers about the various loan products available to them; and
Ø We are working with lawmakers to
provide more affordable financing options that will enable home buyers and
homeowners to keep their homes for the long term.
For more information on the opportunities here in the North
Shore and how you can build wealth through home ownership, contact Extravagant
Realty at (516) 232-8885 or Info@ExtravagantReatly.com.
