Life is crystal clear when viewed through the rear view mirror. Trends, predictions and changes of all kinds are more understandable in the light of yesterday and the real estate market is no exception.
The January 27th edition of the Wall Street Journal carried a story under the headline "Price Cuts Spur Home Sales." The article is packed with data, but the general theme is that price cuts in single family home prices due to market conditions are bringing buyers to the market. Areas that have seen growing housing inventories, such as Denver, Orlando, Phoenix and Orange County California are beginning to see small signs of stabilization via a decrease in housing inventories over a year ago.
Most significantly, I believe, is the fact the headline appeared on the front page of the most influential financial publication in the country. I firmly believe the press had a great deal to do with the fallout of the real estate market in my town because of the relentless reportage of the failing markets in places like Phoenix, Florida, Las Vegas and Southern California. Our market still has not seen the ravages taking place in those markets and most likely won't. We still felt the ripple effect from those markets due to the news articles in our local paper describing those markets and hinting that our market was following suit.
People believe what they read and see on television and in the national print media. Mark your calendar with the date January 27, 2009. It might have been the date the real estate market began to recover!