Mainstream Media Puts Good Spin on Bad Real Estate Market
More and more, I am finding stories produced by the mainstream media where the headline doesn’t jibe with the actual story that follows. A USA Today (newspaper) story from the “Money” section yesterday is a great example of what I am talking about. The headline read “Rising home sales point to a recovery.” On the very next line, just under the headline, the sub-headline read “Prices expected to keep falling 5% to 7% this year.” So we have a recovery but prices are falling? What kind of a recovery is that? The story goes on to say, “Sales of existing homes rose slightly in March but prices fell as the U.S. housing market continues to struggle.” (Click here to read the complete USA Today story.) What are the writer and editor at USA Today thinking or even trying to say? This sounds like a story about a struggling real estate market and, in fact, all the evidence says the market is struggling. It is certainly not recovering.
For evidence of a struggling real estate market, I look no further than the USA Today story. It said, “Yet median prices in March dropped 5.9% from March 2010 to $159,600. Distressed homes accounted for 40% of sales, up from 35% a year ago, the NAR says. Distressed homes, such as those in foreclosure, typically sell at a 20% discount and pull down market prices.” Let me get this straight, “median prices in March dropped 5.9% from March 2010,” and the USA Today story is projecting prices will fall another “5% to 7% this year.” How is this a recovery in real estate? On top of that, the “Rising home sales” are comprised of “40% distressed homes.” That’s up “35%” from last year. That means 4 out of every 10 home sales are a foreclosure, and that seems to account for much of the increase in sales. This is a recovery?
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headlines are always spin today...their counting on people not taking the time to read, or even look deeper and read other stats and research. nasty habit this reading, thinking, looking into a matter.
ReplyDeleteno time to look into anything much other then nascar drivers lives or the latest summer shoes to wear...no time to look into anything other then a glowing screen that tells them what to know...but, but, they DO have time to do that...?..what then, if they indeed have time but don't..care..
choices.
they won't be saying "so what" as more and more comes home to roost.
this thing about americans sitting in front of the glow tube and expecting to hear and be told what to know..like their in grade school and the teacher teaches and knows what's what..as adults they should now be the teachers instead of still sitting and acting like they should still be taught. lazy and immediate pleasures driven and bad choices.
11:49 What is U R point???
ReplyDelete1:21 - To me it looks like 11:49 was basically saying that Americans are clueless, mind numbed TV addicted sheep and have no idea what is coming. But they will not be able to ignore it for long as it will soon affect everyone....
ReplyDelete11:49, if you would begin your sentences with "Capital" letters, and learn the difference between "their" and "they're," perhaps your post would have more credibility.
ReplyDeleteSince anyone can post on this blog, I don't think credibility is an issue here. You know what he's saying.
ReplyDeletea developer bought a lot next to my house and built 6 houses. the community was finished in january 2011 and yet to sold one house. the price of a house is $540,000 plus monthly $200 house association fee. it is bad for real.
ReplyDeleteReal estate is still extremely overvalued right now. The prices are artificially higher than their actual value. We will still need about 5-6 years minimum of buyers simply refusing to buy houses at these outrageous prices.
ReplyDeleteWe need a total shift away from credit. If you're not willing to sell for a reasonable cash amount, nobody should be willing to buy. When you buy with a loan you get hit with interest charges and are also forced to deal with a scummy bank that will look to screw you over no matter what. Plenty of people get foreclosed on even if they're current.
You should never enter into a protracted agreement with another party where you do not gain a continuing benefit and can't end the relationship quickly. Especially when you do not negotiate for your own terms. I think people are finally figuring that out.