My wife and I recently attended a real estate brokers convention in Los Angeles.
Real estate brokers from every part of the country attended this convention and it was interesting to see the different perspectives of the real estate market and where it was heading depending on where you called home.
In talking to the president of the organization, he said that California, as a whole, was booming and the market activity was increasing.
The attendee from Minot, N.D. said that they never experienced the real estate boom and never experienced a bust. Their experience has been one of normalcy.
Duluth, Minn. is experiencing growth because of the mining influence.
In talking to several Canadian real estate brokers, they too indicated that there was no boom or bust and again, business was on a steady uptick especially in the regions that provide oil.
The states of California, Nevada, Florida and Arizona are now referred to as the four sand states and no surprise; they have felt the greatest impact in their housing markets.
The conclusion is that every real estate market is local and everyone overwhelmingly agreed that you should ignore the national news media when it comes to accurate reporting of the real estate situation in the U.S.
We learned of an interesting new product being brought to the market called Equity Protection. The product’s goal is to shelter your home’s value and protect you from a possible down swing in the market. (Where were they three years ago?)
The product is similar to insurance but according to the presenter, it has been deemed not to be insurance and therefore is not regulated at this time.
How it works: At the time of closing on a home you may purchase the protection.
The cost is 1 percent to 2 percent of the purchase price of the home or you may pay a monthly fee of $20 to $30.
On the day of sale, your home is price indexed in your specific zip code.
There is a minimum time of three years which you must hold the home before selling.
If your home has declined in value when you resell, the company will make up the difference based on where the price index is on the day of sale.
This is not an endorsement of the company and more study is needed, however, if you would like more information, their Web site is www.equityprotection.com.
Ray Pugel is a designated broker for Coldwell Banker Bishop Realty. Contact him at (928) 474-2216.