|7385 W Hwy 50
Salida, CO 81201
|Real Estate Is a Solid Long-Term Investment
Salida - Buena Vista - Chaffee County - Collegiate Peaks area - Arkansas Valley - San Luis Valley
The news media is all abuzz these days with information about what is happening in the real
estate market. But if you rely on your national newspaper or TV network to tell you whether
now is a good time to buy or sell, you may be missing some great opportunities. To get the
proper perspective on the value of real estate, you have to go right to the source, and that
means talking to a REALTOR in your local market.
According to 2007 NAR President Pat V. Combs, “Perceptions about real estate have been
skewed in recent months due to the overwhelming focus on national figures. While average
sales and prices help us identify trends, the fact is all real estate is local – conditions vary
greatly from one city to the next. Unfortunately, that news is largely unreported.”
Here are the facts on three popular misperceptions in the real estate market:
Misperception: No one is buying a home, and home prices are falling rapidly.
Fact: According to the National Association of REALTORS, home sales are expected to
reach about 5.5 million this year – about the same level of home sales we saw in 2002,
which was a record at the time.
Fact: While it’s true that home prices are down slightly from last year, the median home
price has increased more than $50,000 since 2002. And, two-thirds of metro areas showed
price gains last quarter.
Misperception: Foreclosures and delinquencies are rising rapidly in every state.
Fact: According to the Mortgage Bankers Association, four states – California, Nevada,
Florida and Arizona – are responsible for most of the increase in foreclosures.
A total of 34 states saw a decrease in rates of new foreclosures in the second quarter.
Fact: The reasons for foreclosures vary from state to state, but many lenders have pulled
back from the market across the board, forcing buyers to sit on the sidelines.
Misperception: Stocks are a better investment than real estate.
Fact: Houses are not like stocks. Homeownership is designed to build wealth over the long
term. Studies show that homeowners have an average net worth of $184,000, compared to
just $4,000 for renters.
Fact: Owning a home also helps strengthen our families and our communities. You can’t put
a price on that.
“When you consider the facts, it’s easy to see why 5.5 million people are choosing to buy a
home this year. There are some challenges in the market, but overall there are many more
opportunities in local markets today. Real estate continues to be a solid long-term
Members of the local real estate board are working in several ways to help you understand
conditions in your local market and take advantage of the opportunities to invest in real
We provide consumers with the latest information on home sales and prices and what
factors are likely to drive the market in the months and years ahead; We can help educate
prospective homebuyers about the various loan products available to them and we are
working with lawmakers to provide more affordable financing options that will enable
homebuyers and homeowners to keep their homes for the long term.