The
past
year
saw
a
slowdown
in
real
estate
markets
across
the
country.
But
the
term
"slowdown"
is
relative
and
should
be
used
with
care:
The
vaunted
housing
"bubble"
predicted
by
many
never
happened
and
some
areas
have
seen
price
increases.
What
did
happen
is
what
you
would
expect
in
any
normal
market:
Local
supply
and
demand
determined
marketplace
trends.
You
can
see
this
most
clearly
by
looking
at
the
data
for
149
metro
areas
compiled
by
the
National
Association
of
Realtors.
Seventy-one
areas
showed
price
gains,
73
had
declines
and
five
broke
even
in
the
fourth
quarter.
The
localized
nature
of
real
estate
becomes
even
more
dramatic
when
you
compare
individual
areas.
The
Atlantic
City
and
Salt
Lake
City
metro
areas
both
saw
annual
gains
above
20
percent.
Alternatively,
in
Florida
prices
in
the
Sarasota-Bradenton-Venice
(-18.0%),
Palm
Bay-Melbourne-Titusville
(-17.0%)
and
Cape
Coral-Ft.
Myers
(-11.7%)
all
dropped.
Given
the
localized
nature
of
real
estate,
it
pays
to
ask
if
there
are
any
clues
which
suggest
that
the
market
is
moving
in
one
direction
or
another.
And
usually,
if
you
know
where
to
look,
such
clues
exist.
Here
are
some
of
the
measures
and
issues
to
consider:
Population.
People
have
to
live
somewhere,
if
the
local
population
is
growing
that
means
there
is
more
demand
both
for
owner-occupied
homes
and
for
rentals.
Check
with
your
local
economic
development
office
for
specifics.
New
Home
Starts.
While
more
people
create
demand,
more
units
create
supply.
Check
with
the
local
home
builder's
association
or
the
economic
development
office
and
ask
about
construction
permits
and
starts.
Prices.
Most
communities
have
local
brokers
who
produce
customized
pricing
data
for
neighborhoods,
HOA
and
communities.
Such
information
is
often
available
from
your
local
Realtor.
Days
On
The
Market.
An
important
measure
of
local
activity
concerns
the
length
of
time
it
takes
to
sell
a
typical
home
--
some
will
take
longer,
some
will
sell
faster
but
there
is a
general
average
which
gives
some
sense
of
market
activity.
Be
careful
to
compare
like
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periods
--
summer
versus
summer
or
January
versus
January
--
to
get
comparable
results.
For
details,
speak
with
your
local
Realtor.
Drill
Down
#1.
When
looking
at
general
statistics
you
have
to
use
care.
For
instance,
broad
market
trends
may
include
both
condos
and
fee-simple
properties.
It
may
be
that
the
local
market
is
doing
well
generally
but
condo
prices
have
stalled
--
or
vice
versa.
Speak
with
your
local
Realtor
for
specifics.
Drill
Down
#2.
Recorded
sale
prices
may
not
reflect
actual
transaction
values.
If a
home
sells
for
$500,000
but
the
owner
pays
a 3
percent
"seller
contribution,"
then
the
real
price
to
the
owner
is
less
than
what
the
records
show.
To
make
sense
of
recorded
information
you
need
to
speak
with
the
local
brokers
who
actually
negotiate
prices
and
terms.
Watch
Those
Interest
Rates.
Whether
you're
a
buyer
or
seller,
lower
rates
are
good
for
real
estate
while
higher
rates
constrict
demand
and
reduce
sales.
Today's
rates,
roughly
6.25
percent,
are
at
the
low
end
of
the
rates
seen
during
the
past
four
decades
--
but
such
rates
are
also
a
full
1-percent
higher
than
what
we
saw
in
the
summer
of
2003.
Check
For
Jobs.
Most
people
finance
the
homes
they
buy
and
therefore
most
people
need
jobs.
When
local
employment
is
rising
that's
a
good
sign
for
real
estate,
when
the
local
job
count
goes
down
look
for
fewer
sales
and
moderated
prices.
Read
The
Local
Paper.
Local
newspapers
are
filled
with
coverage
that
impacts
real
estate.
Look
for
new
road
openings,
planned
malls,
new
factories,
school
construction
and
building
permits.
All
suggest
where
local
growth
is
headed.
It's
Not
A
Sure
Thing.
Regardless
of
what
the
statistics
say,
real
estate
demand
is
in
part
a
by-product
of
factors
which
cannot
be
quantified.
Speak
with
friends
and
neighbors.
Chat
with
your
Realtor.
There
are
lots
of
shrewd,
insightful
local
people
who
may
have
interesting
ideas
and
opinions.
Hear
what
other
people
have
to
say,
especially
people
with
different
views
so
you
can
test
your
ideas.
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