How Wrong Can The Media & Experts Get on Real Estate?

Buyer, Real Estate News

Get the Complete Story on the Real Estate Market

The media is very good at only pointing out the bad news and leaving out any good news that is out there about the real estate market. It not that they shouldn't be reporting the bad news; but they should be giving the full, complete picture of the real estate market.

Why Does It Matter that the Media Screams About The Bad National Real Estate Market?

The media is a trusted source of information. But they are often talking about a different real estate market's problems. When Home Buyers are "scanning" the headlines they don't pay attention to which real estate market the story is talking about.

All the Home Buyer sees is a story about how the market is bad and how they should wait until it gets better. Ron Peltier, president and ceo of HomeServices of America puts it best, "The impact on our (real estate market), the net result today, is that we have homebuyers who have not lost their belief in homeownership or their desire for a home, but they are waiting on the sidelines for the media ... to convince them to buy."

Comparison of Media's Expert Opinion of Real Estate Values and Appreciation Since the Real Estate Prediction

The Media's Negative Quotes and The Actual Real Estate Appreciation

"A home is where the bad investment is."
- San Francisco Examiner, 1996

• National real estate values have appreciated 88% since 1996

"The median price of a home today is approaching $50,000… Housing experts predict price rises in the future won't be that great.”
- Nations Business, 1977

• National real estate values have appreciated 340% since 1977

"The goal of owning a home seems to be getting beyond the reach of more and more Americans. The typical new house today costs about $28,000."
- Business Week, 1969

• National real estate values have appreciated 685% since 1969

"Houses cost too much for the mass market. Today's average price is around $8,000 - out of the reach for two-thirds of all buyers."
- Science Digest, 1948

• National real estate values have appreciated 2650% since 1948

Don't Let the Media Convince You Every Seller is Motivated to Sell At Any Price

Some of the Buyers who are out there looking right now are investors and people looking for a great deal. While you can get a "great deal" on some bargain properties in Jacksonville, the majority of the market isn't as motivated as the newspapers say they are.

If you want a great deal then you should look for:

Pre-Foreclosure Homes

Short Sales

Foreclosures

Corporate Relocation Homes

Vacant Homes

Homes that have been on the market for a long time

Be aware that if the seller doesn't have to sell then there is no reason for them to accept those low ball offers.

Real Estate is Local

I just read a newspaper story about how many foreclosures are on the market and how prices are dipping drastically. At the bottom of the article you learn that all of the statistics are about Stockton, CA. How does that matter to us in Jacksonville, FL? If there is one of the biggest snow storms in the last 100 years in Columbus, OH do we put on snow tires? No. Just like the weather, real estate is local.

Putting The Jacksonville Real Estate Market in Perspective

Last year was not a good year for the Real Estate market. But it was still the fifth best year on record for existing-home sales. As for the plummeting home prices Jacksonville, we're still within 2% of the all-time high median existing home price set in 2006.

The Media will tell You that Real Estate is a Bad Investment

Real Estate will be a bad investment for you if you had bought investment real estate recently for price appreciation (and not monthly income) and you want to sell your investment property this year.

Every investment goes through a bad period. Remember the stock market crash? But if you examine real estate investment returns over a long period you can see that "The average return on a 5% down payment over 10 years is usually 3-5 times greater than stock market returns." (Quote from Ron Petlier)

Now is the Time to Buy

That's not to say that values have not come down in the past year and that this year might not be a little rocky. But for the long run real estate looks like a good buy, especially right now. Take it from 80 year Florida Custom Home Builder, Arthur Ruttenburg, "Anyone who buys a home right now will say in five years, 'I'm glad we bought when we did."

Go Ahead and Sell, You Will Make it Up when You Buy

What is great about the real estate market is that just about every home seller ends up being a home buyer once they sold their home. So if you did end up taking a loss on your home sale you can make it up on when you buy! Everything is a wash. So don't let the current market stop you from moving on.

Click here to subscribe in your reader or Click here to receive these real estate articles and news by email