Keeping track of what's going on in the real estate market is a good thing. Unfortunately, being able to decipher what's really happening requires a big ol' grain of salt. About a month ago, I couldn't turn on a TV or read the news without being beaten over the head with a report that sales of previously occupied homes hit an all-time low. ABCNews.com included this little tidbit in the first sentence of their story: "...a record plunge that's left homeowners across this country simply unable to find buyers." Everybody panic! We're all gonna die! I practically had neighbors bringing baked goods over to the house and telling me how sorry they were.What a bunch of crap. (The report, not the baked goods.) Let's set aside the fact that the federal tax credit expired the previous month, so anybody who  was considering buying a house made sure the deal closed in June in order to reap the benefits. The real problem with this story was the false assumption that the United States is one big real estate market. It's not. The market in Rutland, VT is different than it is Atlanta, Detroit, Portland, Rapid City, Phoenix...you get the idea. Heck, the market in the city of Denver differs from the suburbs.On the other hand, there is no shortage of real estate brokers going to great lengths to find any story that could put a positive spin on the state of the market. In fact, I get a monthly email entitled "Positive Perspective" -- the result of somebody digging like a squirrel trying to fatten up for winter in order to find some obscure statistic that we brokers can use to persuade you that it's 1999 all over again. I wish I could tell you that's true, but it's not.  So carefully digest the news that is being fed to you. Keep the national stories -- negative or positive -- in their proper perspective. And be aware that there are local brokers who want to convince you that everything is covered with rainbows and unicorns. |
Real Estate News - Don't Believe Everything You Read
- By Corcoran Perry & Co
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