You know?? Before starting this post (to cite the opinion of someone who agrees with me!), I thought that I should perhaps give equal time to citing opinions of people who don’t agree with me. But that’s what blogs are for, right? This is my air time and while sometimes I feel I may be operating in a Florida mortgage bubble, people across the planet are actually reading the same stuff and nodding their heads right along with me. I digress…
Here is a great post by Matthew Ferrara about the real meaning of stats and how they are lifted from their context and twisted into headlines that simply don’t reflect reality. Or in this case, taking something like “list prices” for homes and turning them into a big part of what is wrong with the market.
It is not completely the recession’s fault that list prices are off track…it is Realtors who aren’t getting real and who are agreeing with sticker-shocked sellers who are in denial; it is the buyers who are dictating home values right now.
The reason list prices drop is because they were where they never should have been in the first place.
And that is not as much a function of the state of the market as it is the state of mind of people in denial about the current value of their home. So:
- They list it at a price at which they will never find a buyer
- They ultimately wind up lowering it three times after letting it sit at the inflated price for six or so months
- They wonder why their home didn’t sell
AND THEN…some headline hungry talking head takes to running around in a panic saying that list prices are falling and we have another downward spike of consumer confidence (which is the fodder for recession longevity); and round and round we go.
With inspiration from my pals Moe, Larry, and Curly: “Why I oughta punch the media in the mouth for perpetuating these myths!”
At the end of the day, this market is complicated enough without taking something and twisting it in to something else, only to bonk consumers in the forehead with a wooden plank…Stooges style. (If you disagree with me, please let me know…)