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First, I didn't say that the media is causing this. I said that it's taking a situation and making it much worse (or, more often, more widespread) than it is and, by doing that, creating the self-fulfilling prophecy. (If you tell enough people that if they don't get their money out of the stock market they're going to lose it all, long enough, suddenly you've got everyone rushing to sell, sell, sell, and, guess what, the stock market craters as a result of all those people acting on what you told them to do.) Same thing with real estate - if you tell people all over the country that what's happening in four or five very localized areas is happening everywhere, long enough, eventually they start acting as if it is, and make it happen, as a result of all those people acting on what you told them. That's what a self-fulfilling prophecy is.
As for everything being rigged to put a positive spin on things, I'm not sure where you're getting your national news, but that's certainly not what I've been seeing for quite some time now. But, as I also said, this can also be done the other way and be just as much out of balance, encouraging people to buy more and more expensive and fancier houses - that's no better.
First, I didn't say that the media is causing this. I said that it's taking a situation and making it much worse (or, more often, more widespread) than it is and, by doing that, creating the self-fulfilling prophecy. (If you tell enough people that if they don't get their money out of the stock market they're going to lose it all, long enough, suddenly you've got everyone rushing to sell, sell, sell, and, guess what, the stock market craters as a result of all those people acting on what you told them to do.) Same thing with real estate - if you tell people all over the country that what's happening in four or five very localized areas is happening everywhere, long enough, eventually they start acting as if it is, and make it happen, as a result of all those people acting on what you told them. That's what a self-fulfilling prophecy is.
As for everything being rigged to put a positive spin on things, I'm not sure where you're getting your national news, but that's certainly not what I've been seeing for quite some time now. But, as I also said, this can also be done the other way and be just as much out of balance, encouraging people to buy more and more expensive and fancier houses - that's no better.
If the media is indeed amplifying the mess, then they're providing a service as far as I'm concerned. The quicker the pendulum unsticks from the artificially high side to an equilibrium, the better the economy will turn out in the long run. Keeping home prices artificially high is allowing bank owned RE to literally "rot on the lot", when some happy young couple could scoop it up at 50-75% off the original mortgage cost.
i don't mean to sound stupid but my boyfriend is terrified of buying a hoe right now and we have been house hunting. I am not as scared, as once a buyer qualifies for a home loan at a fixed interest rate, aren't they pretty safe even if the bank or loan co. fails? again i don't know much about it. and as for the fear of people living above their means, in some areas it is impossible not to (i am originally from the Washington D.C. area) but i now live in a small southwest virginia town my boyfriend and i have both priced it out and will be very comfortable paying the mortgage at his approved rate even if one of us loses their job. is it still a mistake for us to buy??
First, I didn't say that the media is causing this. I said that it's taking a situation and making it much worse (or, more often, more widespread) than it is and, by doing that, creating the self-fulfilling prophecy. (If you tell enough people that if they don't get their money out of the stock market they're going to lose it all, long enough, suddenly you've got everyone rushing to sell, sell, sell, and, guess what, the stock market craters as a result of all those people acting on what you told them to do.) Same thing with real estate - if you tell people all over the country that what's happening in four or five very localized areas is happening everywhere, long enough, eventually they start acting as if it is, and make it happen, as a result of all those people acting on what you told them. That's what a self-fulfilling prophecy is.
Is it a self fulfilling prophecy, or is it people using information and acting in their best interests (even if those best interest don't line up with what real estate agents and mortgage brokers wish they would do)? If that's the case, the media did their job correctly by informing people what was going on. Those people certainly can't count on industry "experts" to look out for their best interests, so who else but the media is supposed to report news that's not 100% positive for some business concern or another?
Anyway, any guesses on what % of the US population lives in states which are yellow, orange or red? It's more than 4 or 5 very localized areas that are seeing price drops. Add in the fact that inflation is running at 5%, and it looks like there's only two states which have had a chance for home values increase this last year. Is the correct headline "Nationwide House Price Drops", or "Two States Might Have House Price Gains"? The former is more interesting from both a news and a historical comparison side, since that doesn't happen very often.
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As for everything being rigged to put a positive spin on things, I'm not sure where you're getting your national news, but that's certainly not what I've been seeing for quite some time now. But, as I also said, this can also be done the other way and be just as much out of balance, encouraging people to buy more and more expensive and fancier houses - that's no better.
But you said there need to be two positive stories to every negative one, which forces exactly the bad behavior you mention in your last sentence.
I still don't see specific ideas on how to improve the reporting, just a lot of vague claims that the media has made things worse for certain businesses by reporting the truth. I don't see that as a problem.
It's in Deerfield, IL, listed as a "contender" for Money Magazine's 2007 Best Places to live. On a busy road, but set back on a nice piece of land with mature trees. I don't think it's in foreclosure, since I don't see it online for that. I do know it was purchased pre-bubble, because there are no previous sales records with the Lake County Assessor's office online site.
It's not nearly the only example I have. It's just one that came to mind, since the newest price drop is very recent and we really liked the house when we went to the open house. At the time, we felt it was priced too high to not be "perfect" for us. Since then, we've moved on and Deerfield is no longer under consideration.
If you want more, I've got more-- from lots of different suburbs, nice affluent suburbs along the northshore and not in the exburbs. We covered a lot of territory when we first got here. I can't count how many times I've said, "If they'd been asking that price in the spring, we would've bought it." But now they're all chasing the market.
By the way, homes that get pulled off the market don't count for setting current prices. And neither do homes that sit unsold for months and months and months and months. That's one of the reasons this is such a hard market to trust. Very little is selling, so you don't know what the value is. All you know is that with average-days-on-market higher than Miami, FL, the sellers here are drinking some pretty strong Kool-Aid.
Rebuttal again on media "FRENZY"-- I concede usually the media loves a car crash. But go take a look at the Real Estate sections online for the Chicago Tribune, Chicago Sun Times. Count the number of fluff articles about remodeling or green homes or model homes and new subdivisions. What's the ratio to stories about local housing trends and the effect on buyers and sellers. It's a lot more favorable than the 2-to-1 ratio that TexasHorseLady wants. And that doesn't even include special "Housing Sections" that are all sunshine and rainbows. That's because the sponsors are all homebuilders and real estate sites.
I'm sure in some markets, it's different and the local news is really salivating at the housing crisis. But my impression of the Chicago media is that they cow-tow to the real estate industry and make as few waves credibility will allow.
Thanks, this confirms my thoughts. I got a little behind and didn't see the link post you sent. This home in Deerfield is a PERFECT example of someone thinking that even though it needs EVERYTHING where updating is concerned, it still should get over $600,000 bacause "it just should". This is an example of "overpriced" to begin with and even the 474,000 seems like alot. You should see what you can get for 550,000 in my suburb(Wheaton)! Less than 20 yrs. old, all current updates with granite in kitchens, updated baths, hardwood floors, finished basements with home theatres, etc., etc., etc., and ample sq. footage. Not 3 bed, but 4 bed, 3 bath!!! So this is a bad example and why all of us realize some need to come down to reality where their home prices are concerned. However, this type of example is what absolutely DOES drive the assumptions that anything that's priced at the original $625,000 like your example above, is overpriced and coming down, no matter WHAT! This is where the misconceptions come in. Some homes ARE worth $625 AND were worth A LOT more, so $625 is a GREAT price right now. This price drop on this sepcific home is NOT the norm and a very BAD example of why many think the whole market is this way! Laslty, it also changes and effects the average %ages GREATLY when this type of listing is thrown in the mix. Of course it makes a difference in the overall averages of increases/declines. And there are many just like this. So for those of us who were priced fairly, regardless of the market, this is probably the biggest frustration of all. That house looks like one my parents had in the 50's (according to pictures as I wasn't alive) and they paid $35,000 for a similar type. Overpriced "grandparents" home trying to make a killing? You bet.
first, i didn't say that the media is causing this. I said that it's taking a situation and making it much worse (or, more often, more widespread) than it is and, by doing that, creating the self-fulfilling prophecy. (if you tell enough people that if they don't get their money out of the stock market they're going to lose it all, long enough, suddenly you've got everyone rushing to sell, sell, sell, and, guess what, the stock market craters as a result of all those people acting on what you told them to do.) same thing with real estate - if you tell people all over the country that what's happening in four or five very localized areas is happening everywhere, long enough, eventually they start acting as if it is, and make it happen, as a result of all those people acting on what you told them. That's what a self-fulfilling prophecy is.
As for everything being rigged to put a positive spin on things, i'm not sure where you're getting your national news, but that's certainly not what i've been seeing for quite some time now. But, as i also said, this can also be done the other way and be just as much out of balance, encouraging people to buy more and more expensive and fancier houses - that's no better.
This is the best, most accurate post concerning real estate since I joined this thread back in may!!!!!! Thank you for making yet another attempt to try and get people to understand how the media has affected this situation. The doomers always think we non-doomers are just looking to "blame the media" when in fact, no one has ever tried to say that. But they have certainly, certainly, certainly made a bad situation much, much worse!!!!! Couldn't give anymore points to ya or I would have. So a reply instead for all to see!
If the media is indeed amplifying the mess, then they're providing a service as far as I'm concerned. The quicker the pendulum unsticks from the artificially high side to an equilibrium, the better the economy will turn out in the long run. Keeping home prices artificially high is allowing bank owned RE to literally "rot on the lot", when some happy young couple could scoop it up at 50-75% off the original mortgage cost.
Here we go again- ANOTHER generalized statement! What the heck makes you think 50-75% off is what should be expected? Are you that "out of it" that you honestly believe our real estate in this nation is overpriced by 50-75%? What are you smoking?
Is it a self fulfilling prophecy, or is it people using information and acting in their best interests (even if those best interest don't line up with what real estate agents and mortgage brokers wish they would do)? If that's the case, the media did their job correctly by informing people what was going on. Those people certainly can't count on industry "experts" to look out for their best interests, so who else but the media is supposed to report news that's not 100% positive for some business concern or another?
Anyway, any guesses on what % of the US population lives in states which are yellow, orange or red? It's more than 4 or 5 very localized areas that are seeing price drops. Add in the fact that inflation is running at 5%, and it looks like there's only two states which have had a chance for home values increase this last year. Is the correct headline "Nationwide House Price Drops", or "Two States Might Have House Price Gains"? The former is more interesting from both a news and a historical comparison side, since that doesn't happen very often.
But you said there need to be two positive stories to every negative one, which forces exactly the bad behavior you mention in your last sentence.
I still don't see specific ideas on how to improve the reporting, just a lot of vague claims that the media has made things worse for certain businesses by reporting the truth. I don't see that as a problem.
This data can be looked at through the eyes of TexasHorseLady's last post, again. The colors that are orange, yellow, or green, for that matter, were worsened by the "PANIC" created as she stated. I GUARENTEE, if the media starts reporting that "THE BOTTOM IS HERE", and nothing but, people will immediately become convinced we've indeed hit it, everywhere and start buying because now if they do, their homes won't lose value when they walk away from the closing!!! GET IT NOW?
This data can be looked at through the eyes of TexasHorseLady's last post, again. The colors that are orange, yellow, or green, for that matter, were worsened by the "PANIC" created as she stated.
Please show you work. What evidence do you have that those areas were worsened by the media reporting the collapse of the credit market compared to lenders not lending because of the collapse of credit markets?
I seem to remember quite a few mortgage brokers going under long before this mess was all over the papers. Is the media so powerful that their reporting can cause people to read the bad news now and travel back in time to late 2006/early 2007 and default on their loans?
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I GUARENTEE, if the media starts reporting that "THE BOTTOM IS HERE", and nothing but, people will immediately become convinced we've indeed hit it, everywhere and start buying because now if they do, their homes won't lose value when they walk away from the closing!!! GET IT NOW?
I get what you're saying (and shouting isn't a sign of someone with an argument based in fact) - but the problem is that it doesn't fit with what actually happened. The media continued to report good news about housing for months and months during the early part of the decline. That didn't stop sales from slowing, prices from going down, and shaky mortgage companies from going out of business. If the media couldn't prop up the a fundamentally unsound market at that point, I don't understand why you think they can do it now.
I still don't get where all this media bashing is coming from. As near as I can tell, it's just complaining that the reporters aren't telling the truth as you'd like it to be and are instead telling the facts as they are. You can't really blame them that reality doesn't match your faith in what the world should be like.
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