Media Frenzy Over Housing Market Decline. A psychological condition?
Check out these headlines compared to the content...
MSN Money…Boom to bust, almost overnight
“In Texas cities, the Carolinas, Utah, New Mexico, Oregon and Washington, real-estate markets are strong”…”In Houston, prices have risen 3% over last year “…”Real estate in the Pacific Northwest is still being pumped up”…“The Northwest's real-estate boom is likely to continue,”…
CNNMoney.com… Sharp home price pullback
“New evidence of a housing market slowdown emerged Tuesday - growth in the price of a single family home was just 1.17 percent in the second quarter, a decline of more than one percentage point from the prior quarter when prices grew 2.20 percent.”... “Conversely, states where prices appreciated more modestly over the past few years experienced more modest pullbacks this quarter. In Arizona, the average home sold for 2.94 percent more than during the first quarter. That was after five years of rapid growth during which prices nearly doubled. Florida prices, which spiked nearly 113 percent over the past five years, rose just 2.51 percent...
The Nation 2005… Pop Goes the Real Estate Bubble
“Let's not be too alarmist. Today is truly different from the past. There are no reliable historical precedents to fall back on, and one quarter does not make a trend”… “The prevailing belief has been that the housing market would stay strong as long as mortgage interest rates remain low for reasons nobody, not even the most owl-eyed economists, understands very well, the rates have stayed fairly low.”…
OK enough cut and paste. There are thousands of examples not only in business news but in every aspect of news. My point here is that the media always looks for the worst, regardless of anything positive. The headlines are scary and ominous. The sky is falling down right...NOT! Listen Chicken Little, the sky’s not falling down. Maybe a little rain or snow but not falling down.
A self fulfilled prophecy is more likely the longer they predict one, but we’re still not experiencing the highly anticipated market meltdown and restructuring of the entire solar system they've been longing for. Maybe these alarmists are lost in their own “Bubble” of self importance they can no longer distinguish between their lust for ratings through flamboyant headlines and personal agendas from the contents of their own articles...
posted by Gene Quinney Owner/Broker at 3:19 PM
2 Comments:
Any one who uses the cliche of 'chicken little' and 'sky falling' SCREAMS DENIAL. Please move on to acceptance phase. The industry is toast for now. See you on the way down ( I own 2 homes).
I have no knowledge of your location but it must be in one whose market is in rapid decline, or you have unfortunately placed yourself in an unadventurous financial equity position. I hope you end up on top with those two homes. Many markets are in trouble. Arizona, many parts of California some on the east coast but I'm in the greater Seattle, Puget Sound area where it's virtually been immune to market forces dating back to the mid 80's. There’s a great article in the Seattle Time written by Mathew Gardner dated September 03, 2006 that details Seattle's resilience from market forces. It's a good read. Not all markets are local In my humble opinion, and with local forecasts strong many Californians are seeking shelter here in the Beautiful Pacific Northwest.
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