In Real Estate Location is Everything

In real estate location can mean all the difference.  When real estate across the country has taken a nose dive, the only areas which are holding up are either those where the economy is still strong (yes there are some), areas where banks did not partake in the sub-prime lending or in areas that are always desirable to live in.  There are many high-end towns across the country that are in areas where real estate values have dropped 20%.  In these areas the most desirable towns have only dropped 10%, if at all.

A recent article in the Boston Herald mentions the “grim” Boston housing market “at the end of 2008 nearly 18 percent of homeowners in Boston were living in homes that were worth less than they paid for them. . . Also, home values in the Boston area have slipped 22 percent since the housing market peaked in 2005.”  A positive light in the article was “Barry Nystedt, president of Home Buyers Advisor, a buyer’s agent, said in healthy markets such as Newton and Wellesley where he works, values have held up. He said that sellers in those towns are getting between 95 percent and 97 percent of asking prices.  Location is still critical,” he said.

It is still possible to sell a house for its value if it is in a sought-after location. Research is of the essence when purchasing real estate and in today’s market there are a lot of options.  It is, after-all, difficult to find an area of this country which is not a buyer’s market.  Choosing valuable real estate is, in effect, choosing an area where real estate values will stay strong.