Chapter Two of the media misinformation
Chico 12 & 24 "news" ran segment two of their "bursting real estate bubble", and no surprise, simply a reprise of their misinformed maundering. Reference is repeatedly made to the real estate expert who reports a 20% drop in prices, with more to come apparently, but no supporting evidence. No facts. They interviewed other real estate people for this segment but those people reported factually about the market, and those facts didn't align with the preset intention to scare everyone so they were excluded from the aired segment. No fun just reporting facts.http://www.zillowblog.com/zillow_blog/2006/11/today_zillow_re.html
This link is offered to remove the "he said we said" quality from our comments and to offer the view of evidence gathered from a mountain of data. Whether you like or don't like Zillow, their data base is huge, and objectively presented, and paints an entirely different picture from that presented by our local "news" stations. The time of using a home as a speculative investment is probably over, and why not? Why would any normal person expect to buy something that's readily available elsewhere and expect to sell it to someone else for more than they paid for it? In fact there are very few things a person can buy, use for a while, and then sell , without suffering a substantial reduction in value. Check out the furniture, the vehicle in the driveway, or your favorite golf clubs. Most of them worth less than purchase price probably. Is there some rational reason your home should be different? If anyone thinks their home is worth more than market value they are likely going to call it home for a while. Unless or until the demand again exceeds supply, home prices are going to be stable. Real estate has always had long cycles, simply because it takes time to sense a change in demand, more time to respond, time to clear government hurdles, time for financial markets to adjust, etc. We are simply seeing one more adjustment within a cycle of indeterminate duration and only a fool would presume to predict the top, bottom, or the end of this phase. So long as interest rates are low, employment is high, gas prices are low and home prices are stable, if you want to buy a home, do it. If you want to sell your home at a realistic price sell it. Circumstances are perfect. If you want to extract more money from your house than it's worth, good luck. You might include a few shares of Enron in your offer to sell to sweeten the deal.
Thanks for visiting.
This link is offered to remove the "he said we said" quality from our comments and to offer the view of evidence gathered from a mountain of data. Whether you like or don't like Zillow, their data base is huge, and objectively presented, and paints an entirely different picture from that presented by our local "news" stations. The time of using a home as a speculative investment is probably over, and why not? Why would any normal person expect to buy something that's readily available elsewhere and expect to sell it to someone else for more than they paid for it? In fact there are very few things a person can buy, use for a while, and then sell , without suffering a substantial reduction in value. Check out the furniture, the vehicle in the driveway, or your favorite golf clubs. Most of them worth less than purchase price probably. Is there some rational reason your home should be different? If anyone thinks their home is worth more than market value they are likely going to call it home for a while. Unless or until the demand again exceeds supply, home prices are going to be stable. Real estate has always had long cycles, simply because it takes time to sense a change in demand, more time to respond, time to clear government hurdles, time for financial markets to adjust, etc. We are simply seeing one more adjustment within a cycle of indeterminate duration and only a fool would presume to predict the top, bottom, or the end of this phase. So long as interest rates are low, employment is high, gas prices are low and home prices are stable, if you want to buy a home, do it. If you want to sell your home at a realistic price sell it. Circumstances are perfect. If you want to extract more money from your house than it's worth, good luck. You might include a few shares of Enron in your offer to sell to sweeten the deal.
Thanks for visiting.
posted by Douglas Doss | 5:49 PM
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