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May 26, 2011

Home Prices - Look Out For The Herd

Happy Hot, Sticky, Summery Day,

   The one and only Winter fan shouting out to you today !

   When you think about Housing and Real Estate, one of the first things that comes to mind (or should come to mind), are Home Prices. This week, the Federal Housing Finance Agencys (FHFA) released their seasonally adjusted purchase-only house price index, which, as described, is, "calculated using home sales price information from Fannie Mae- and Freddie Mac-acquired mortgages."

   The "skinny" on these numbers boils down to the 2.5% drop in Q1 2011 vs. Q4 2010, and the 5.5% drop from Q1 2010 to Q1 2011. In the actual breakdown of the figures, "the strongest prices", as they were referred, were in the West South Central Division, where prices, "declined only 0.5 percent." Amongst the largest price drops (for the 25 most populated metropolitan areas) was the Atlanta-Sandy Springs-Marietta, GA area, which saw prices drop in excess of 13% from Q1 2010 to Q1 2011. Ouch !

   What does this all mean? "Absolutely nothing!", says Eric Bramlett, a Real Estate Broker in Austin, Texas, who says that all Real Estate is "local", and that the only buyers who are interested in purchasing "anywhere in the United States" are investors. Bramlett says that the, "vast majority of home buyers need to buy a property in a specific city or metro area, and most want to purchase within a sub-market of that area."

   In the world we live in, and the way we are wired, when we hear a market is in decline, many people go into the "Herd" mentality mindset, slap the blinders on, and forge along with those negative thoughts, so in a way, I believe it does effect us, even if indirectly.

   Bramlett provides some solid advice for homeowners and buyers, which is to, "find out where your local market stands, and you will have an accurate read on where you stand as a homeowner or buyer."

   Hopefully, you will read this for knowledge purposes and will not slap on the blinders. Educate yourself, check your desired area for crime, business, expansion, employment, etc. Did we miss anything? We'd love to hear from you.

Have a Great Week, and Happy Rent-to-Owning !
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

TAGS: #homeprices #FannieMae #FreddiaMac #Atlanta #realestate

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