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Texans should be Fed up with real estate doom and gloom

I have a small beef with the national real estate news media. I was reading an article from CoStar Group about the 2008 real estate outlook. I like Costar because they're pretty straightforward and reliable.

The article, entitled "Housing Outlook Dims for 2008", reminded me of the same doom and gloom headlines from other national news outlets.

WHY TEXANS SHOULD HAVE A BEEF WITH THE NATIONAL MEDIA

They're biased. Reporters chatter about housing "booms" and "busts", but not stability because middle ground is boring. California, Arizona, and Florida sellers are suffering after real estate speculators rushed to those markets and overpaid. Houston and other areas of Texas aren't suffering the way the headlines would lead you to believe.

They don't know our market. I reported yesterday that the Houston market was "ho-hum" because it's slightly declined, but hasn't gone bust. Was this sensational news? No, but it was the truth. Texas didn't severely appreciate so we were largely ignored during your news hayday of 2003-2005. Smart investors heard of our relative stability and are now flocking to us.

They don't report the full story. My friend from Berne, Switerzland said foreign consumers are pulling their funds out of America because our media's reports of the housing markets crashing "everywhere". Consumers in the U.S and other countries still do not understand why the subprime market failed and how banks will come back even stronger with better practices established. They also don't hear about many local markets (like Austin) that are doing well.

HOW TO SURVIVE REAL ESTATE IN ANY MARKET

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Posted by Dee Copeland, Principal Broker on 12/10/2007 08:39 AM

Comments (6)

texas, real estate, housing, buyers, sellers, investors, news media, outlook

This post has been included in Texas Information

6 Comments on Texans should be Fed up with real estate doom and gloom

I agree. It has deterred my out of state investors. The media is over reporting this issue

12/10/2007 09:25 AM

by Ginger Magoon, College Station, Texas Real Estate (RE/MAX Bryan College Station Texas)

To say that the there is not a real estate bubble is putting your head in the clouds. I do recognize that the Houston market has been more stable (relative to other markets), but c'mon inventory is at an all time high and prices will need to adjust downwards. There is more supply out there than qualified and willing buyers. Only realtors refuse to acknowledge this...since this impacts your profit. Also, I've heard plenty from other bloggers that prices in Austin have dropped 20-30%!!! Maybe instead of refusing to acknowledge this market, you try to make the most of it by injecting some realism into your approach.

01/17/2008 09:23 PM

by GetRealTexas

I agree with you!!!!!! I wish there were more that we could do besides just pass the word. At Gracy Title Company we were slow in November and December which is normal for that time of year. In October we had a record breaking month...a record breaking month for Gracy Titles HISTORY! January is really busy for us! We are back to normal after a normal wind down around the holidays...

01/19/2008 02:50 PM

by Tana Hunt/Escrow Officer (Gracy Title Company)

I appreciate the comment by GetReal. I look at the market from an objective point of view since I've done statistics for 3 years in corporate.

I'm saying the overall market has slowed in terms of units sold, but not in top factors such as job growth, appreciation, and overall growth. Each real estate market is different and if you only look at units sold, you're missing the boat.

In West Austin, we have multiple offers. Same goes for many areas of Dallas. The worst areas are the ones that investors were speculating in during 2005 and 2006, like East Austin, which was 50-60% appreciation during the short period. Even now, many homes in East Austin are sold in 30 days if they're vintage or ultra-modern. The average days on market for the MLS area is less than 60-90.
The average days on market in Austin is currently 70 days. Dallas had 80 days on market IN DECEMBER, the slowest time of the year. How can we be in a "bust" when homes are selling in under 90 days? Is that what you call a bad market? IF so, I'm sure Californians and Floridians would disagree.
If there was a bust, why are prices still on the rise? The worst hit so far is the subprime markets I just did a market update in Dallas. Homes priced above $300k actually SAW AN INCREASE in sales!

If you don't live here and sell here, don't tell us our market is doomed. If you want to say it decreased from historic highs, fine. My buyers aren't getting contracts accepted due to multiple offers, so please call them and let them know that the market has slowed.

01/21/2008 10:37 AM

by Dee Copeland, Principal Broker (Copeland Group Realty)

I posted this on my Texas Realty Blog so those readers can understand what's happening as well. I think a true real estate professional is always objective and always reminds buyers that they need to carefully evaluate the market. I think my perspective comes from being a real estate investor specialist and investor myself. No market scares me because offers should be based on seller motivation and how the home compares to others.

I don't sell drapes and "gorgeous views", I sell real estate that people have to make money from. We have to buy well, evaluate, and sell at the right price. I'm currently helping some investors who got caught during the mortgage market shift and they're not fairing so well. They will probably break even despite being conservative. The speculators are losing their shirts and rightfully so. That' what happens when you gamble on the market.

My investors like to know what the market is doing and make sound decisions based on real data. My job is to be even more conservative than they are.

Follow the original post here.

01/21/2008 10:49 AM

by Dee Copeland, Principal Broker (Copeland Group Realty)

Great Job Dee! I've got your back!!!!

01/21/2008 07:57 PM

by Tana Hunt/Escrow Officer (Gracy Title Company)