I didn’t really plan on such a quick update to the Reflections page, having just updated the column on February 8, 2007. But I was prompted to say something about the state of the real estate market here after reading an upbeat article appearing in yesterday’s Desert Sun. You know the old adage: What’s the difference between Recession and Depression? “Recession is when your neighbor is unemployed; Depression is when you are unemployed!” That is to say, your perspective is determined by your own situation. Well, if you are active in the real estate market today, it’s the same thing. If you are a buyer having finally found your dream home, and at what seems to be a bargain price, things look pretty good. However, if you are a seller whose home is still on the market after nine months and if, in spite of several listing price reductions, you still don’t have an offer, the market is definitely depressed. Or if you are a buyer looking for an affordable home in an attractive neighborhood and, after searching for months, still haven’t found anything, the market is still in a slump.So the point is, simply put, it’s not helpful to generalize or oversimplify as to what is happening in the real estate market here in the valley. The market does seem to be improving; let’s wait a little before drawing any conclusions.
In particular, look carefully at conclusions that are based upon “statistical averages”, especially if they are national or regional in scope. In many cases they may not be relevant to your specific situation. As I have said previously in these Reflections, whether you are buying or selling, get the facts and evaluate the factors that relate to your own city and your specific neighborhood of interest. For example, what is relevant in the Vista Las Palmas neighborhood in Palm Springs may have little in common with what is happening in Cathedral City Cove in Cathedral City.This is not a bad market for either buyers or sellers. There is opportunity for everyone. You just need to understand what’s happening in your market and plan accordingly. In a slump? in a rebound? It really doesn’t matter. What matters is your understanding of the relevant factors that are going to have an impact, either positive or negative, on the achievement of your specific goals.