Foreclosure Crisis Sifts the Myth from Reality of the Property Market

The foreclosure crisis has helped analysts sift the myth from reality in the property market. There is nothing called a national property market. It is all local. The property value has not uniformly fallen – it depends on the segment in which the unit is situated. In some cases the drop is zero.

Many think that the market in Novato is weak. During the first six months of 2008 the median sales price sold through MLS was $706,250. In the last six months it was $625,000 and till now in 2009 it stands at $535,000.

On scrutiny it is found that more than 55% of all the residential house sales came from the distressed category of foreclosure or short sales. This messes up the median values. But if count is taken only of the houses that were sold for around $800,000 and did not belong to either of the group, the numbers look different. In the first six months of 2008 the medial sale price calculated to $1,129,500 and in the last six months it stood at $1,071,250 and till now the 2009 reading was $1,200,000. A little bit of hunting will produce more data to prove the point.

Plenty of meaning can be found in this. Banks and the lenders are slowly but surely falling under the scrutiny of the regulators. Most of the people go by the report of general plummeting of house prices without analyzing all the figures. It means that a typical house owner in Marin is unjustly bracketed with the housing market elsewhere in Merced, Vallejo as well as Stockton and informed that house value is falling when in reality this is not happening.

The value of the house is dependent on its own structure and where it is located – the amenities connected with its site as compared with the other houses under the same segment in the same area. For most of the region in Marin the real estate market is steady as well stable. There are a few exceptions like the condos in Novato and San Rafael.

The point is that one has to be careful to guard the value of one’s own house. The first thing is to see that the house is generally in a good condition. Problems should be attended to when they arise. The house continues to remain the best investment.  Secondly if one plans to buy or refinance in unit it is best to get a local appraiser. Last but not least a local realtor is the best person to know about the market trends in the locality.

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