Consider this scenario. Say you’re at your local supermarket and notice that apples are on sale for $3.95 each. If you’ve ever purchased apples before, you know that’s a pretty hefty price. However, you’ve heard about the “national apple market” on the news, so you’re not surprised. After all, they’ve been saying that apple prices will be higher this year.
Now, let’s say you’re driving home and decide to drop by a farmer’s market. One of the stands, run by a local family farm, is selling their apples for just $1.95 each.
Why is that?
The reason is pretty simple. The national apple market doesn’t always reflect what’s happening locally. In fact, the local market may be very different.
So, what does all this have to do with real estate?
Well, the same scenario can play out in real estate. You may hear news about the national market… about bubbles and rebounds and ups and downs. But that doesn’t necessarily mean your local market – the market right here in your neighbourhood – is the same.
So before you make a decision about whether or not to make a move, find out what the local market is doing.