There is certainly a glut of homes available currently, with more being added daily, yet interest rates are still relatively low and as a matter of fact, at levels of 5 years ago! Creative financing is almost as readily available as it was a couple of years ago. Yes, it is true that the subprime market is a mess and a scary element causing some confusion...qualitative word being confusion (that state caused by a lack of understanding). So what is one very large cause of this slowed market?...the MEDIA! I unequivocally beleive that the largest creators of this current situation is the MEDIA. It is the Media who have caused the Housing slow down for buyers who have decent credit... and substantially so. Mortgages are still available at good rates so it cannot be the difference of 1 point that could cause such a slowdown. The media hype has instilled into the consciousness of buyers this fear that is absolutely not substantiated by the facts. Sellers, Buyers and We as Real Estate professionals are the ones who get hurt because of this fear that the media instills. The snowball effect is beyond beleif...Sellers scurry to get their homes to market for fear that they will not get the price that the neighbors sold for several months ago thus begins the process of a neighborhood having more and more for sale signs popping up... then nervous buyers (who are absorbed into the media hype of climbing interest rates and homeowners going under ) who may be looking to buy are biting their nails as they drive through a neighborhood and see many for sale signs. Of course, the next question is "why so many homes for sale in this community", which makes them feel less inclined to consider a home in that neighborhood because they think that there must be a problem here in that given community. Do you see how the media creates this snowball effect and how, not only the consumer who could buy at slightly lower or similar prices as a year ago at relatively decent interest rates may miss an opportunity while interest rates remain at current levels. It is a truly unfortunate and "devoid of truth" this Media scare... driven by medias ability to create fear in the marketplace...they pound every issue to death and keep us all crazied. Of course it is obvious that there has been som very greedy sellers in some areas of the country and a corrections do ensue, but in the large majority of regions, this is a total falsity. What can we do...well, for one thing we can fight back against the Media with our own MEDIA... by bringing on home to our potential buyers, engaging them with the facts, on our websites, blogs and drip e-mail campaigns for starters. As Real Estate Pros it is our responsibility, not only to our clients but to ourselves to give as much exposure to a property as possible and within financial reason. But all the exposure one can conjure up will not allay the fear that the media has instilled unless, in some form, we fight back with the truth in words to counteract the medias misguidings. If we take the time that we spend complaining about a slow market and put a good bit of that time marketing the truth about the fact that interest rates are great and prices on homes have settled back Blogins from the folks at Lantierrealty.com
This entry hasn't been re-blogged:
Re-Blogged By Re-Blogged At
Find what you need?
See More Blog PostsAbout Real Estate! SEE MORE NOW!