Watching/reading the news you'd think it's doom and gloom AGAIN. Newscasters are cackling that real estate is on a downward trend again. Watching the news on TV, it sounds really scary to buy a home today, even though interest rates are at their lowest, and home prices have come down to reasonable levels.
From CNN: New home sales drop 12.4% to record low
Florida Times-Union: Home sales take hard hit in July
Daily Finance: Existing-home sales plunge 27% to lowest level since 1999. The article goes on to say "feared the worst, and got it." This article quotes National Association of Realtors, but fails to mention that NAR also said: "Home prices continued to gain..."
As a matter of fact, NAR's announcement said: "July Existing-Homes Sales Fall as expected, but PRICES RISE"
National statistics don't reflect what's happening in many neighborhoods. As a matter of fact, in Oakland, from July 2008 to July 2010, sales show an upward trend in terms of median list price compared to median sold, How else can we look at this except that it's a good thing?
My Oakland and Alameda CA buyers who have heard the same stories that this is a buyer's market are dumbfounded at what they're encountering in my neck of the woods: MULTIPLE OFFERS and OVERBIDDING!
"Where are the buyers?" They're here! But they just keep getting outbid.
And what are they buying? Well heck, they're willing to wait it out and write offers on short sales. But the short sale negotiators are still taking months and months to process the short sales, which result in buyers walking.
Maybe if the short sales are approved sooner, we'll see a sharp increase in home sales.
Let's highlight the good news instead
From Wall Street Journal: Mortgage picture brightens, for now where it is noted that "The improvement was seen in almost every state, with the biggest declines coming in those that have been hardest hit by foreclosures: Arizona, Nevada and Florida."
Thankfully, CNN Money also said: Fewer mortgages are in default
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