When I see headlines that reference “National Real Estate Market”, or even “State-wide Real Estate Market”, I seldom read on.  There really is no “National” or “State-wide” real estate statistic, other than mortgage rates, that can be meaningfully applied to where I, or you, live.

All real estate is local. We all still live in villages...a place we refer to as 'the neighborhood'.   The value of our home, and that of the surrounding homes, is dependent on circumstances in our neighborhood.  The sale, upgrade or neglect of one home affects the price of every home in the neighborhood.

Neighborhoods can vary in size but generally there are many in any given ZIP code.   My village is 30 custom-built homes on large lots in a dead-end subdivision.  The property values here are very different, and much higher, than those in a nearby subdivision of new KB Homes tract housing still in ZIP 32086.  On even smaller scale a 'neighborhood' can be one or two streets with home values very much different than those a couple of blocks away.

Many Internet sites, such as Zillow and Trulia, analyze sales in the area, more often than not ignoring neighborhood boundaries.   But no analysis, no matter how well-tested and refined, can predict the emotional component.   It might work for an investor purchasing a rental property but has no equation for buyers willing to offer more than perceived 'market value' for a home they fall in love with.

In our years as Realtors Judy and I have seen many customers deeply disappointed that their pages of charts and careful analysis of the market value of an intended home purchase was trumped by another buyer who ignored the numbers.  The disbelief is usually communicated as, “What were they thinking. Didn't they do the math?”  The simple answer is that they didn't 'do the math' and were thinking “I love this house and am willing to offer what it takes to get it.”

If the village is big enough the analytical buyer can find another home similar in style, size and amenities.   But this time he will have to include the higher price paid for the home he thought he was going to buy at his carefully calculated 'market value'.

St Augustine has lots of neighborhoods.  All very close to each other, but all so much different.  So, what are you willing to pay to live in the village of your choice?