Local Housing

WHY ARE ALL HOUSING MARKETS LOCAL
Courtesty of NAHB

All markets march to the beat of their own drummer as determined by a unique mix of demand and supply issues.

Housing appreciation rates will vary significantly from one market to the next -- and even within a single market - depending on demand, supply constraints, topography, consumer preferences and other factors.

Because of the unique local nature of individual housing markets, the possibility that there will be any nationwide decline in home values is very remote, a point that Federal Reserve Board Chairman Alan Greenspan, the nation's chief monetary policy maker, has repeatedly made in recent months when questioned about whether there is a housing bubble.

Consumers could see a few super-hot markets cool in the near future, with values leveling off or even declining a bit. But even in markets where home prices might stabilize or decline somewhat, the vast majority of homeowners will escape unfazed because values increase over time, and most homeowners are in the market for the long term - not a short-term gain.

For more information about this item, please contact Kym Kilbourne at 800-368-5242 x8447 or via e-mail at kkilbourne@nahb.com.

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