(The Proof CNN Won’t Show You, Inside)
My apologies in advance to CNN. I’m not trying to make them look foolish. It’s just that the facts are the facts, and you need to know them. (If you like when the Big Guys look foolish, you MUST see the latest Real Estate Market Report)
Apologies completed, let’s move forward.
You can only invest in specific local markets and they look nothing at all like this overall U.S. average.
Here’s where it gets interesting.
You’re looking at Detroit, MI, Midland, TX and San Diego, CA.
See how each one is different. They all have their own unique signature or fingerprint, as you can see.
Detroit completely missed the housing boom. In our example, it was on a slow steady decline for the ten years prior to the fourth quarter of 2004.
Midland, TX was one of the worst markets in the entire country. Home values fell throughout the 1980’s and 90’s.
San Diego was like a roller coaster; huge spikes in real estate values followed by a crash. 10, 15, even 20% annual price appreciation wasn’t unusual, then it’d drop like a rock, and start the cycle all over.
Let’s zoom in on the 4th quarter of 2004. See the red circle on each chart.
San Diego’s real estate market was red hot. It had ALREADY been on a tear for seven years. Then, in the 4th quarter of ’04 – as it was nearing 30% appreciation for that single year – BAM!
See how that blue line spiked, then reversed and came crashing down starting in the 4th quarter?
Mortgage rates were still improving. The economy, jobs, income and the population were all still growing. There wasn’t any terrorist attack or external force – the San Diego market just crapped out overnight and went for a nose dive. You’ll see the same thing happening over and over in our other examples today.
The important take-away is that while the media talks about real estate as if it’s one size fits all, you now know that’s not true.
While San Diego was rolling over and heading for a record-breaking crash, Midland, Texas was still in its coma… getting ready to soar… and Detroit had already turned negative. Remember, this was 2004 – long before talk of a housing bubble got started!
Wondering what if your local market is ready to boom or about to bust?
Check out the Real Estate Market Report where I reveal the amazing real estate trends happening right now, even in your home town. Click Here Now to See the Evidence.