CoesterVMS CEO talks factors that protect markets
A small inventory pool coupled with high earnings in areas like Washington D.C. and Raleigh and Charlotte, NC, tend to protect these housing markets against the low home values the rest of the country is seeing, Brian Coester, CEO of CoesterVMS says in a new report.
"Home values are regional, even though they are often referenced as a whole across the U.S.," he explained.
According to Coester, local factors like earnings and inventory shortages protect home values even against potential negative repercussions that could result from what the Obama Administration is calling "sequestration" spending cuts.
"Certain variables make some housing markets more resistant to the country’s economic ups and downs than others. In those markets, issues like the government’s impending spending cuts won’t impact home values the way they can compromise home values in other markets," said Coester.
The CEO says another factor insulating housing markets against falling values is increased homebuyer demand.
"There are a lot of reasons that some individuals are ready to enter the market at this time. Maybe they had some financial difficulties during the recession and they’re back on their feet. Maybe they have spent the last few years rebuilding their credit to be in a position to get a mortgage," said Coester.