Friday, September 22, 2006
How Low will real estate go?
This was the title to an article featured on MSN, provided by Forbes.com. Again, here is the sensationalism of the media in action!
They have quoted the economist Mark Zandi as saying :"The boom is definitely over, there's no debate about that, Now the question is more how hard is it going to land, if it lands at all.". The truly interesting part to consider is the fact, of what does he mean by "..if it lands at all"? Has anyone ever seen a home sell for 1 dollar? I know I sure haven't, but I sure have seen stocks that sold for over $100 sell for less than $5!
Slanting of the Article
Everyone should be able to construct their own opinion of the real estate market without the slant of negativity or overwhelmingly positive information. While the author quotes Zandi as the truth teller of the market, she judges the opinion of the economist from NAR. Her opening sentence when quoting Lawrence Yun, a senior economist for NAR, is the fact that "Not suprisingly" he has a "more optimistic" outlook. Hmmm, I wonder what she is trying to say? While she made an effort to quote two difference economists, she definitely wants everyone to believe the worst case scenario.
Appreciation Rates
While the overall tone of the article is negative, oddly enough data tells the real story! Sadly many people only read headlines which contributes to the panic. When one reads the table of data for our southern California Real Estate market on the 10 year horizon you will find the following:
They have quoted the economist Mark Zandi as saying :"The boom is definitely over, there's no debate about that, Now the question is more how hard is it going to land, if it lands at all.". The truly interesting part to consider is the fact, of what does he mean by "..if it lands at all"? Has anyone ever seen a home sell for 1 dollar? I know I sure haven't, but I sure have seen stocks that sold for over $100 sell for less than $5!
Slanting of the Article
Everyone should be able to construct their own opinion of the real estate market without the slant of negativity or overwhelmingly positive information. While the author quotes Zandi as the truth teller of the market, she judges the opinion of the economist from NAR. Her opening sentence when quoting Lawrence Yun, a senior economist for NAR, is the fact that "Not suprisingly" he has a "more optimistic" outlook. Hmmm, I wonder what she is trying to say? While she made an effort to quote two difference economists, she definitely wants everyone to believe the worst case scenario.
Appreciation Rates
While the overall tone of the article is negative, oddly enough data tells the real story! Sadly many people only read headlines which contributes to the panic. When one reads the table of data for our southern California Real Estate market on the 10 year horizon you will find the following:
- Estimated Median Price in the 2nd Quarter of 2016 for Los Angeles - $667,048, or a 24% increase!
- Estimated Median Price in the 2nd Quarter of 2016 for San Diego - $856,067, or a 37% increase!
You be the judge of the real estate market!
Labels: Real Estate Fall
