Wall Street Journal Gets It Wrong
Sales are booming, buyers are missing out on that perfect home due to a “maybe I’ll think about it” attitude, or a “let’s low ball them” approach.
This kind of mentality has left many buyers empty handed and wishing they had listened to their broker’s advice. Well, enough disappointment and eventually people listen.
I wish the national news and publishers and publications like the Journal weren’t so far off base sometimes, but that’s the price you pay for relying on national news for regional or local insight.
Here’s what the Journal recently published:
I’d seriously enjoy having the opportunity to talk to you about your plans if you’re moving, or if you know someone who is considering a move, and needs some straight answers.
“Blink, and you’ll miss it.” That isn’t a phrase associated with the lumbering housing market. And with so many pundits still wiping egg off their faces from prematurely calling a housing bottom in recent years, there is no rush to over-interpret blips in indicators such as the S&P/Case-Shiller Home Price index.
Rubbish. I’m seeing homes in the Boulder area in all price ranges sell, if priced right and marketed properly, within days.
Another quote from the WSJ article:
Relying on paired sales and closing data, what the index offers in thoroughness it sacrifices in timeliness. By contrast, some other indexes based on more recent data, such as that from the Federal Housing Finance Agency and private sources such as John Burns Real Estate Consulting, show a nascent recovery.
Even if a turnaround is afoot, though, housing is still in for big changes. For one, home purchases are largely being done by investors looking to become landlords, or by a small pool of credit-worthy individuals. So if prices rebound, the homeownership rate, which peaked at 69% in the third quarter of 2006, will likely keep falling. Now at 65.4%, John Burns, president of the eponymous real-estate firm, sees it hitting 62.9% by 2015, the lowest since records have been kept.
“There’s no way we’re going back to 70%,” he says, because many first-time buyers during the boom weren’t qualified to own homes.
While Burns may be partially correct, one must look at local information and data. Above all else, simply the market activity which indicates that a huge turn has happened since about late 2009 in the Boulder area, and a significant upswing in home sales in Boulder county in all price ranges.
I’ve even seen $1mil to $2m homes that have languished on the market for 200 to 300 days going under contract… frustrating some of my buyers who have come both locally and from out of town listening to this ‘national’ information and basing their decisions on erroneous information.
Don’t get caught in that trap if you want to capitalize on still record low interest rates, and prices that have remained flat for quite a while, the upward pressure will build very soon.
-Zachary Epps, GRI, ABR, REALTOR®, Eco-Broker®, full-time RE/MAX professional,
and author of the
Call, text, or email me today! … I’d seriously enjoy having the opportunity to talk to you about your plans if you’re moving, or if you know someone who is considering a move, and needs some straight answers.