Digs Data; It Tells The Story

The future is unwritten in the words of Joe Strummer, but we'll know the results of December 2011 in just a few short days. Wow another year slips by; the emotional component of buying becomes much more relevant post 40 years old (insert smile face here).

I like this chart (courtesy of UrbanDigs), it paints a picture that is clear and easy to digest. It shows us at the precipice before the fall along with a relatively quick recovery. 2009 was the bottom and the top of a raucous real estate market, a recovery/stabilization that I did not trust until near the end of 2009. It was a slow steady slog until we hit June of 2009, then suddenly buyers collectively let out a deep breath and dove in! But the winners were the buyers with brass you know whats that pulled the trigger in January/February of 2009, those buys will throw off anybody's comp analysis. 

What I like about this chart is that it demonstrates relative strength and signs of a market stabilizing after being told we were at the brink of systemic collapse. This chart is downright pretty compared to similar charts for the majority of the United States. According to Case-Schiller we will continue to bounce along the bottom for the next 2-3 years, so with 4% interest rates, those looking to purchase a home with a long term view should be in pretty good shape. As discussed here and to death everywhere else there are multiple components to buying a home; two of the big ones are financial and emotional. Only you can know if they are in proper balance (and if you are not sure, get some professional advice).