Be careful of inflated sales figures and price margins when analyzing the real estate market returning in your town. Reading into general numbers, nationwide stats or rushing to take advantage of tax incentives might be treading in shallow waters.

An article in Financial Times these weekend sums up my fears of jumping into these shallow waters. Reports of the London real estate market returning fast and furious are simply based on high end sales and not the average homebuyer. First time homebuyers in London are not in the forefront of the pack and mortgage money is still torturous to obtain. So, British real estate might be blowing more smoke then steam. According to this article, London real estate sales are 75% below what their peak was just a few years ago and might just sputter soon.

What is happening in your neighborhood? Remember, when doing research, not only look at sales in your town, but make sure specifically your price range and property type. Who cares if the McMansion on the other side of the tracks sold if you’re a buying a bi-level near the school? Be smart- do your own Sherlock Holmes. Don’t drown in shallow waters!