Is Negative Press Worsening The Real Estate Market?

By
Real Estate Agent with Buyers Brokers Only, LLC
An interesting post on the Real Estate Cafe Weblog talks about the psychology of home buyers and sellers, and how that psychology can impact the market.

The author discusses something called the "negative cycle." You can listen to an audio report from August 30, 2007 about the current state of the market on NPR's Web site.

Although the fear in the market certainly has kept some potential home buyers on the sidelines, those individuals who are swayed by the publicity generated by the media about the declining real estate market to wait before buying a home also will be the people who change directions on a dime, if the news turns even a little positive.

The problem with blanket predictions about the real estate market is that markets vary not just from state to state, but also from city to city and even neighborhood to neighborhood. I recently did some research for a buyer client and found that colonial-style homes in a particular community held their value better over the last year than ranch-style, split-level-style and other homes in the same community.

A lot of factors go into the value of a home. I've found that some areas where prices have fallen the most have seen some increase in sales. On the other hand, some communities that haven't seen much of a decline in prices have experienced a more significant decline in sales.

The point is that home buyers need  a real estate professional that will advocate on their behalf and remain 100 percent loyal. If you wait a year to purchase a home in order to possible save $5,000 or $10,000, will you really be saving anything, if you agent does a crappy negotiating for you?

Predicting where the Massachusetts real estate market will be in 12 months is like guessing red or black or odd or even at the roulette table.

In addition, who cares where the real estate market is in 12 to 18 months? If you plan on buying a home today and selling it in 12 to 18 months, you shouldn't be buying a home. If you plan to stay put for five years or so, then all this market chatter probably is irrelevant.

Finally, please repeat after me:

My home is not an investment.
My home is not an investment.
My home is not an investment.

Your home is a place to live and enjoy life. There are a lot of benefits to home ownership, and most of the benefits are not related to your finances.

Trust me, you don't want to be someone who spends the next 10 years renting in anticipation of the 50 percent decline in the real estate market that is not going to happen.

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Rainer
28,572
Colorado Springs Real Estate
Colorado Springs, CO

It seems as though there are a lot of people on the fence these days. I agree that real esate markets are localized and should be treated as such.

Sep 12, 2007 10:29 AM #1
Ambassador
2,758,110
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Shucks.  My home has fallen in value since I purchased.  I don't care.  I love it.

Folks invest in real estate.

Folks live in homes.

Sep 12, 2007 10:50 AM #2
Rainmaker
291,454
Kate Bourland
Marketing with Kate - Redding, CA
Onlilne Marketing Mobile Marketing

Of course the media is playing a big role in the market.  I think that we won't see a dramatic change until the media picks up on the good press.  The problem with that is that the followers will have already missed the market!.

We have our work cut out for us.

Sep 12, 2007 10:52 AM #3
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Richard Rosa

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