Is to much information distorting the truth? The Problem with information, is that it can be easy misinterpreted to mean something entirely different than the deliver of the message intended it to be.
Take the following example for instance;........Line up 25 people in a straight line, and whisper to the first person in the line, that the speaker wore a Blue pinstriped suit, with a blue shirt to match with his blue eyes, and a yellow tie that did not match with any of his apparel except for his class ring.
Chances are, what is being communicated to the first person in line, will totally be different to the 25th person in line. The man and was naked except for the blue tie he wore.
Where am I going with this? I spoke to 3 different people today, each of them told me what they understood about the the real estate market. Each of them said the overall market is bad, but none of them could give me any specifics that made any sense. They couldn't quote facts or figures, but the could quote the source where they heard it, and what there perception was..
In California for example,I know that we had 477,000 homes sold in 2006, and approx. 6,738 homes that went into the beginning stage of foreclosure (NOD Notice of Default). That means homeowners who were in default were behind in the monthly mortgage payments, however there were only 2,700 homeowners actually lost there homes.
An NOD period is for approx. 90 days. In California as an example, thats at least a window period of 90 days, they are officially giving the home owner a delinquent Notice, and if they don't bring the back payments current, by the end of the 90 day window period; the Beneficiary will have the Trustee start the publication for the Notice of Trustee Sale, which ultimately means that the Trustor (Borrower) will be losing the home at the end of 21 days if he doesn't bring the payments current.
The term NOD, is a Notice of Default. These figures came from the Calif. Assoc. of Realtor Website for 2006. Those home owners that lost there homes was less than 1/2 of 1%. A far cry from the typical 3-5% of mortgages that go into default on a normal year. By the way, in California, since I am quoting statistics, the number of Homes Sold in the State of California from the following years, will be quite interesting, read between the lines:
1970= 216,054 1975= 369,678 1980= 377,664 1985= 328,274 1990= 364,456 1995= 342,535
2000 = 535,472 2005 =624,957 and for 2006 we had 477,460 homes sold. When you compare, the number of homes sold, in reality versus the amount of Foreclosures, they are relativly small by comparison.
The average person out there is so confused by so much negative Horse S***, about the real estate market, that it's no wonder why the economy is in turmoil. When newspapers, television, radio, magazines and the internet, start using statistics and other information to distorts events to create sensationalism.
The newsmedia is supposed to be unbiased,and present the news, however, the days of real responsible journalism are gone, and sensational media are mere conduits to sell advertising. These media outlets often the distort information to create a teaser or a hook to stay tuned to hear a message from our sponsor.
Let me leave you with this bit of information. Real Estate is the key to the economy. All the materials and salespeople of every piece of lumber, every nail has other parts to it, roofers, tradesmen, plumbers, carpenters, electricians, appliance dealers, car dealerships, automotive industry, auto parts, clothing, air transportation, rail shipping, barbershops, beauty salons, restaurants, cafe, coffee manufactures, Starbucks, gardeners, housekeepers, etc. everything is inter related or affected. If you agree with me, respond to me, also your elected officials to get them to raise the conforming loan limits for high cost areas and to put pressure on the Federal Reserves to Lower the Fed Funds rate in the very near future. What do you think?
Carlos R. Arvizu Sr.
Pronounced R. V. Zoo
Prudential California Realty
The Mulhearn Group
562-755-3856
WWW.Carlos Arvizu.com
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