For many people, buying their first home isn't just about picking the best home they can afford in the city they're from. It's about scouring ALL cities for a great home, and it's a much bigger job. They have to compare condos in Riverside, California to homes for sale in Anaheim. They have to take into consideration the employment landscape of the city, the price of homes, the availability of good schools and entertainment, and most importantly, whether their homes will continue to be worthwhile purchases in the future. If you're considering buying a home lets talk about it as an investment for your future.
To look into the future, you don't need a crystal ball. All you really need is a good understanding of the past. For instance, over the last several months, have the values of your local area real estate been increasing or decreasing? If they've been increasing, it's a good bet they will continue to do for the foreseeable future until something happens to stop it. Perhaps it reaches the maximum ability of buyers to pay or an industry collapses and many people move away.
In Arlington for example, the average listing price was just over $191,000 and the median (or middling) sales price was only $92,000. Given the size of Arlington, these values indicate a buyer's market. If you were to go there right now looking at homes, you would see that you could afford two Arlington homes for the price of one expensive Toronto or New York condominiums. But if you were to buy now, would your home's value increase or decrease as the months passed?
According to home value statistics, the median sale price of a home in Arlington has been dropping steadily since the third quarter of 2006, when the sub-prime mortgage crisis hit. The crisis had the effect of dropping prices on everyone, whether they owned an Orlando condo or a Nantucket Home. The crisis was followed by the recession, and prices have continued to drop at a fairly steady pace ever since. Therefore, barring any major changes to the city of Arlington or a sudden recovery of the American economy, you can expect home prices to continue their slow decline.
Is there anything that's likely to occur that might change the momentum or direction of Arlington's dropping home values? Well, there's always the possibility that so many people will flock to buy cheap Arlington, Texas houses for sale that it raises prices, but it's unlikely. On the other hand, initiatives to curb unemployment, make the city greener, rehabilitate homes, and create a public transportation system could make the city more attractive to buyers in 5-10 years.
This page is brought to you by Burlington Ontario real estate agent Cathy Erskine. You can learn more at Cathyshomesforyou.com or on this site's listings page.