Balanced Real Estate Information

Well it took awhile but finally we see an article on the front page of the real estate section of the LA times that says the nations real estate market is not all doom & gloom. The article "Some robust stats contradict the market-gone-bust reports" is written by Kenneth R Harney of the Washington Post Writers Group.

So let's get into how this is an article that, more than likely, will not get enough press because it is not about how the real estate market is going to come crashing to the ground. Here are some great points.

1. New mortgage applications are up - This is a leading indicator of people willing to purchase homes. Allen Greenspan, these bloggers, have mentioned this in the past as well.
2. Mortgage Rates are within a few percentage points of 40 year lows - It is a great time for buyers because rates are very low compared to history which makes things affordable for them on a monthly basis.
3. Unemployment - It is only at 4.6%. This is fantastic.
4. The economy is growing - When the economy is doing well people invest in assets like new or bigger homes.
5. Pending Home Sales are up - This is for homes that are currently in escrow. This number would be low on a national level if the market was falling apart.

Donald Kohn, the Federal Reserve Chairman, indicates in the article that he believes the real estate market is just "re-balancing". So sellers who want to sell will still be able to sell because there will be buyers who are out there looking. The article does point out how sellers will have to be more realistic about what they are asking for.

My favorite part of the article is the section that discusses how the financial press & the TV News media are over dramatizing the adjusting of the market. These bloggers have been saying for some time that nothing sells advertising like bad news.

So think about the fact that 1 writer had the courage to write what these bloggers believe is the truth. Things are great for buyers and sellers. Sellers have to be more realistic about their asking prices & buyers are not buying at the top of the market.

These bloggers would like to thank Kenneth Harvey for his article and hope that others get a chance to read it.

You be the judge of the real estate market!

Labels: buyers market, House market, Housing Market, market bust, mortgage rates, Real Estate Fall, real estate market, real estate prices