Real Estate is a Long Term Investment

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 REALTOR^Ò 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 REALTORS^Ò, 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.  

www.extravagantrealty.com