Every day it seems there is a new report, survey or set of real estate statistics released. Then it seems like they constantly contradict themselves. On news headline says that we are seeing great improvements, and the next day we here it is all doom and gloom again and we are still in for the worst of it. So do these statistics mean anything to those involved in real estate investing?
Firstly you have to understand that these reports are often terribly skewed by whomever is putting the numbers together. In fact you could almost make the numbers show how things are getting better or worse at anytime depending on which data and criteria you choose to use. Though perhaps the biggest flaw is that most of the numbers released are national and do not accurately reflect what is going on directly around you. If you have a good feel for your local market and are wired into what sales are going done and where values are then you probably have a much more accurate picture than anything you find in the news. Which is why it is often better to stick to real estate investing locally.
However statistics and news headlines cannot completely be ignored, even if they are incorrect. Why? Because they will show you what perceptions other investors and home buyers are being given. They can also provide you with leverage to justify your prices or investment opportunities when approaching sellers, buyers and other real estate investing companies. Know what is going on and what is being said, but pay attention to what you can really see and feel going on around you too. If the government had paid more attention to Realtors and those active in real estate investing in the street a few years ago perhaps even the worst of this downturn could have been avoided all together. So, yes watch the news, know your numbers but do not be afraid to invest with your gut.