Confusing Housing Market News? Here’s How to Navigate It

Learn how to evaluate the headlines so you can do what’s best for your situation

Sure, the housing market fluctuates all the time -- but what's important is what you *do* during those ups and downs. However, with as much info as there is swirling around, how do you know which news to listen to, and what to do about what you hear? It can be an overwhelming process, but Brent breaks it down for you here.

More of a reader? Catch the video transcript below!

Are home values going up or down?

Hey guys, Brent the Broker here with you, and today I want to talk about navigating the news in today’s market.

There are people that say the housing market’s going to be fine, and just as many are saying the market is totally screwed. So, how do we navigate all of the noise coming in our direction?

Today, I’m going to give you some tips for navigating the news: how to determine what’s good information and what’s not, and how to gather this information to make the best decision for your situation.

Remember that the new articles rely on emotions and sensational headlines to get you to click.

Their job is to stoke your emotions so that they can get you to read their article, click on their website, or watch their video. A lot of the time, the headline they put out there will be sensational…and then you read the article and realize it was clickbait. The sky isn’t falling after all!

Keep in mind that markets go up and down.

According to the Case Schiller Index for San Diego, 72% of 5-year periods going back to 1987 are up or flat. And, we know that 100% of the time, rents go up in 5 years.

So, if you’re spending $3,500 a month in rent right now, and you continue renting over the next 5 years waiting for the market to come down, then you’re going to spend $210,000 waiting out the market. On the other hand, if you had bought a home instead, you’d have a 72% chance of actually coming out ahead with your investment in 5 years.

Is the market going down right now?

I’ve seen some really smart people argue that the market is going to remain stable and maybe even go down a little. I’ve also seen experts that I really respect say it’s going to continue to go up. With so many conflicting voices, how do you know what to believe?

This brings me to my pro tip of the day. We don’t know!

They don’t know, I don’t know, we don’t know.

At the end of the day, you need to make sure that whether you’re buying a home or selling a home, you need to make sure it’s the right decision for you. Does it work for your personal financial situation?

You also need to make sure that you’re making your decision with a long-term plan in mind. For example, we know that markets go up and down. Markets cycle throughout the years. If you can hold on to your home for a long period of time, it mitigates a lot of that market volatility.

The last piece of the puzzle is, guys, there are still good deals to be done today. Not all deals are created equal. I can’t tell you how many people go out in the marketplace as a buyer, survey the landscape, and end up carving out a deal that is even better than market rate. They get a house for under-market value, or they structure a deal that allows them to lower their interest rate, or they do a deal that works for them specifically. Same with sellers.

If you’re a seller in today’s market, where more power and control is shifting into the buyers’ hands, it’s still a good time to sell if you need to. If you’re getting moved across the country, or if you’re gearing up for retirement and thinking of moving, there absolutely are reasons to sell in today’s market.

So, when considering whether to buy or sell a home in today’s market, put your personal situation at the forefront of your decision-making.

That’s going to be it for me today, guys! See you in the next one!

Brent Edwards (aka Brent the Broker) is a residential real estate agent and Realtor in San Diego, CA who helps clients buy and sell homes in San Diego, California and all surrounding areas. Brent is a highly-recommended Realtor in San Diego by family, friends and past clients. Call Brent today at 619-550-8070 if you have any questions about real estate in San Diego or you'd like to buy or sell a home.