Peaks and Valleys - Which are you?

The real estate market has its ups and downs everywhere. But, of course, not everywhere experiences the same cycles. While Los Angeles and San Francisco real estate prices are slumping, NYC is actually headed skyward, albeit slower than usual.

During what has become one of the worst housing markets in 50 years it is important to realize one simple fact. Just because the market as a whole is headed south, your region may be doing independently well! Regardless of national trends, there are a few areas of the country where home prices are actually increasing. The price of homes, as a whole, has actually increased over the past year, according the National Association of Realtors. Each area of the country has a different draw and appeal than the others, so each region has peaks and valleys all its own. The median home price in cities such as Mountain View, San Jose, and Stanford have all shown strong growth numbers in the past year. The most important thing is to keep an eye on the average home price in your area. If you start to see a drop of more than a few percentage points, it may be time to call it a day. Don't panic if you see a little bit of movement, as that's perfectly normal. There are a few things to watch out for that may help you forecast the market. Check the "Want" ads. By paying attention to the local job market, you can get an early indicator of which way the wind is blowing. The more jobs listed in the paper, the more people that are able to find jobs, and the fewer homes that are up for sale. This, of course, affects home prices! You can also be a sign-watcher. Pay attention to the number of "For Sale" signs in a given neighborhood. If the "For Sale" signs start to outnumber the street signs, it's time to cut your losses. And remember, it's always better to look at year to year figures, since home buying is as seasonal as good tomatoes.