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Housing Market, Economy, and the Media

Does anyone else believe that the Media has caused many of the problems with today's economy? Mortgage Lenders made the snow ball, placed it at the top of the mountain, and gave it a hard push. The Media then jumped on that snow ball turning it into an avalanche.
I am a Realtor who has had no shortage of prospective Buyers, but each time when they began to make a purchase, they would read or hear something that scared them to say, "I better wait". Am I wrong to think that if those Buyers were not waiting but made those purchases that the Economy would not be under the avalanche?
Now the Mortgage Lenders are making things worse by their requirements to process a loan. The Buyers who use their common sense and want to make a purchase are faced with Underwriters requirements that border on ridiculous. Lenders definitely needed to return to the pre-housing-boom requirements, but many have gone too far. One example is, the Buyer paying for an appraisal which is normal, but paying for an additional Appraisal Review done by the Lender's Underwriter is not. If the property is covered by a Home Owner's Association (HOA) or Property Owner's Association (POA), lookout, the Underwriter may want a copy of every single page of every single document that has ever been prepared by that association. Added to everything else, the loan packages will probably not be completed by the Underwriters for the scheduled day of closing/settlement and that usually means the Buyer's locked-in mortgage interest rate expires.

Posted by Sandy Keller on 04/19/2008 03:37 PM

5 Comments on Housing Market, Economy, and the Media

I couldn't agree more. I'm in North Texas. We have the third best economy in the US. However, every day prospective buyers ask me about the "down" economy or the "depressed" real estate market. We have to educate every buyer and every seller every day. I tell them it's a great time to buy. Not because the market is down but because interest rates are. Of course, then there is the hurdle of underwriters kicking out every appraisal on every transaction regardless of the situation or the buyer's credit. It seems they are afraid to lend because they are listening to the media as well. Where does it end?

04/19/2008 03:58 PM

by Leigh York ABR,GRI,CRS (CENTURY 21 Shirley Hooks, Inc.)

Yes, I believe if the media would just report all the good news for a couple of months we could pull out of this..

04/19/2008 08:30 PM

by Konnie McKee Northern Virginia Real Estate (Konnie McKee )

The media has been planting "doom and gloom" for quite some time. Our responsibility is to counteract that with good sound advice. We have to be the educators of this market.

04/22/2008 03:35 PM

by Robert L. Brown~Grand Rapids Real Estate Flexit Realty, West Michigan (www.mrbrownsellsgr.com)

Welcome Sandy! I am from the Western Slope of Colorado, this state has been labeled the "foreclosure state" so it seems the hurdles feel higher than the altitude here. I think you are right about the media, I am a home stager and believe that buyers and sellers need some positive information coming out of the media. I agree with Robert we need to counteract with good sound advice and educate.

Debby Langford-Puckett HSE-Home Stager Altitude Designs-Western Slope Glenwood Springs,Colorado

04/22/2008 03:53 PM

by Debby Langford-Puckett (Altitude Designs)

MSM love to paint a negative picture when reporting the news. At times, it does make our job much more difficult. Welcome to Active Rain.

04/22/2008 04:29 PM

by DDR Realty, Orange County, NY