Home : Blogs : Dave Shockley Charlottesville Virginia Real Estate : Dave Blog

Is the News Media hurting the real estate industry in your area?

Is the Media hurting the real estate industry more than it should?

When I first started in real estate here in Charlottesville, Virginia one of the first seminars I attended emphasized the point of location, location, location. I feel this rule is still true. Even in our current market it is all about location or locality.

Are some areas of the country hit harder than others? Of course they are. That has always been the case. As the market here in the Charlottesville area began to sky rocket (around 1999) other areas of the country were still fighting an up hill battle. Some areas never made it up the hill, and they are still struggling today.

I have been in touch with a number of mortgage companies in our area, and have spoken with a good number of REALTORS®. Most have the same questions. What is everyone waiting for? Interest rates are still the best they have ever been, and the inventory of homes is at an all time high due to all the new construction. Sellers are offering incentives that have not been available for over 10 years.

True, home prices over the past 10 years have been rising in some cases to ridiculous highs. Granted there have been some unethical mortgage practices taking place. However, prices now have fallen in line with true market values, and the local mortgage companies I have spoken with tell me that they have money to loan at great rates even if your credit scores are not at an all time high.

Do you feel that the news has scared a lot of buyers? I was even told the other day by another agent that they felt it was politics as usual. They stated that the news was going to remain bad until after the election. Well I am not sure I believe there is a conspiracy, but the media does have a tendency to go into over drive when there is any type of negative news.

I just had a listing (on the market for 8 weeks) in the $350,000 to $400,000 range go under contract. Now 8 weeks is not a lot of time, however the owners still had the 2004-2005 mind set when things were selling in days. They were extremely concerned because of what they were hearing on the news every night until the contract came in.

What do you think? How has news affected your part of the country? Is there any good news out there? I happen to think there is but there isn't an outlet for that news. Come on tell me something good.

Posted by Dave Shockley Charlottesville Virginia Real Estate on 10/29/2007 11:09 AM

Comments (11)

news, media, charlottesville, virginia, realtors, mortgage, conspiracy, incentives, market

Post is included in group: Charlottesville Virginia - Info and Properties

11 Comments on Is the News Media hurting the real estate industry in your area?

OCT

2007

Media is feeding on us like sharks! Stay positive and fight! Good luck and Thanks for the post

Thanks Richard. I intend to continue the fight to get the word out. Real Estate is still the best investment out there. Like the says goes "They aren't going to make any more of it."

To answer your question --

Yes! The media is painting a horrible picture of doom and gloom and I'm wondering which industry they're talking about each time I read or see a "report".

IMHO, folks are always going to buy and/or sell real estate because shelter will always be a basic necessity and no one can grumble about the relatively low interest rates no matter what the "reports" say...

Clearly the media and press reports of the Las Vegas market have nearly halted resale closings while growing the number of available listings. Currently only 5 out of a 100 listings are closing each month! Meanwhile nearly 5000 newcomers are arriving each month and sittling on the sidelines primarily due to the bad press by our local media . . . newspapers and television. We are countering with "Buy Now" campaigns by our local board and membership.

The media in general only reports bad news. Bad news sells.

It's like what my American Letters (sort of like creative writing) professor told me back in the day, "People don't want to read about a perfect family. All perfect families are the same. They want to read about dysfunctinal ones because they are all dysfunctional in a different way." Good news while good, is boring. The media only puts feel good news at the end of their segment to basically tell the world that yeah they just told you a boat load of bad stuff around the world but in the end everything is going to be okay.

I wish they would stop with that type of format, but from their perspective I understand it.

There is no logical reason why the media should attack our industry. Creating a public panic, whether it be a panic about stocks/securities or the safety of bank deposits or whatever, is damaging to the vast majority of people. Those who are behind all the real estate bashing are shooting themselves in the foot. It may sell newspapers or tv commercial advertising, but it's completely counter-productive.

It is, however, the obligation of the media to report the news. If a particular urban area is experiencing nearly zero resales in a particular month, it would be inappropriate not to report it. The difference comes about when the media makes it look like all markets are suffering to the same degree, which is simply untrue.

It seems there is definitely a lot of frustration out there. I also understand about bad news selling, but wouldn't it be nice if they would just balance it a little. I like Forrests idea of the "Buy Now Campaign" we are also doing something similar.

I would love to hear of any other types of campaigns that are going on in your areas.

Of course the media is hurting the real estate industry. Every time they mention that the bottom has not been hit they encourage buyers to wait longer, Karen

Yes, I think that they are doing us a disservice(if such a word exists), we pay for advertising, yet they are slamming the market. Have you heard that Brian Buffini is in Richmond on Nov 1st & 2nd? I am jealous that you are so close. It would take me 8 to 12 hours one way from CT. If you are interested in attending his event and learn about our systems, I would be happy to refer you and gain a discount for you and your associates if you would like to go, as a courtesy of my membership, Let me know, or, go to the website, www.BuffiniandCompany.com and register! We, also, have a Buffini Clubnet Group on the Rain;) He offers wonderful ideas at the event for this market!

It's Still a Good Life!

Fran Rokicki, Clubnet~Mentor

NOV

2007

Lots of scare tactics in the media right now. They are hurting the business more than the actual mortgage problems are.

The national media isn't helping anyone. I think we have to get the positive word out about our particular markets to counteract the negative. It's not all doom and gloom.

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?