RE: Media and the Market

Susan Burton Licensed Real Estate Agent, Charlotte, NC

Date: February 6, 2008

I wholeheartedly agree with those who have responded that the media is fueling the bad market. Fear is a powerful thing, and since buying or selling a home is a huge decision, even a little fear can paralyze people. Yes, the real estate market is having problems. But constant "doom and gloom" reminders, and exaggerations or misrepresentations of the facts can perpetuate the existing problems.

I live in Charlotte, NC, which is one of the best markets in the country. But we still get the national news here, and that seems to be all people hear. Our local Realtor Board President has written an editorial for the local newspaper, and she and others have met with the local media to no avail. I saw an article in today's Charlotte paper about the crisis of abandoned foreclosures, and it wasn't until you got inside to the actual article that you realize it's talking about Cleveland. Sure, some issues are evident in most markets, but don't make it sound like every market is in a downward spiral. Our average list price and selling price is UP year over year, but you wouldn't know that from the average days on market and the numerous price reductions our sellers have to make.

I also agree that markets are local. As another member said, that can mean neighborhood by neighborhood. The best areas of Charlotte have an inventory of only 6 months (a balanced market), compared to almost 9 for the entire local MLS. And the average price there is about $60k higher than the entire MLS. No negative market effects there, but you still have people trying to "steal" houses in those areas.

Education of clients is definitely the best way to go. I plan to write an article on my website about the Charlotte market, and I like the idea of providing lots of facts and figures. It's hard to argue with data. I also advocate locking your clients in a bubble and taking away their TV and cell phones while you help them buy or sell their home. :)

Happy Selling!

Susan

Susan H. Burton, e-PRO

Prudential Carolinas Realty

SusanBurton@CarolinasAgent.com

http://CarolinasAgent.com

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Gary Anderson Licensed Real Estate Agent, Fort Lauderdale, FL

Date: February 6, 2008

<Judy, You mentioned that the media did "the same thing" when we had a seller's market. Interesting. I don't recall any of us complaining about that coverage.>

When things get tough people look for scapegoats. In S. Florida the majority of articles pertaining to our market come from a press release of statistics from either the local, state or national associations (NAR, FAR, RAGFL). They have done what most media outlets do to compete. That is to sell the sizzle (sound familiar). When things were great the headlines read "record increase in home values". I surely don't like to see the headlines now that things are different but like I said most often it's spurred by our own statistics. I've submitted both comments and editorials to our local paper and have been published on most occasions. If you want to change what you see, don't complain about it. Make an effort to reach out to the media and you may be surprised. They don't have a problem with free articles for there readers. Not only that it's free exposure for you.

Gary Anderson
The Keyes Co./ Realtors
e-Pro/ Internet Specialist
Ft. Lauderdale, Fl.
mobile 954 253 8281
office 954 467 0105 x237
garyand1@bellsouth.net
www.fortlauderdalesbesthomes.com

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Ronda Densford Licensed Real Estate Agent, FL

Date: February 6, 2008

Tom - I noticed the dateline on that article was July of 2007. Do you still feel that the outlook for your market is the same? When that was written I don't think we knew the scope of the subprime problems or the fallout that would ensue. I have a referral in the works down there and would love to know if you think the author would still feel the same today?

Ronda Densford, REALTOR
Jacksonville Florida Market

Magnolia Properties-"A Southern Tradition"
Web Site E Mail

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Doug Hall Licensed Real Estate Agent

Date: February 6, 2008

The media is pretty much solely responsible for whipping the country up into a frenzy about the sub prime loan foreclosure storyline. The constant hourly bombardment of the public with over-dramatized and statistically inaccurate stories were instrumental in blowing up the story way beyond what was necessary. The way the media portrayed the situation, the country was on the verge of collapse and innocent people in every other house in America were being tossed out on the streets. In reality, they used the number of Notices to Foreclose filed to prove their point instead of looking for the actual foreclosure sales that happened. Estimates vary on how many people brought their notes current, renegotiated with the bank, or sold their homes in lieu of actually being foreclosed on, but most estimate it was around 20-30%.

The entire sub prime story was ridiculously blown out of proportion. Not one story reported on the fact that sub prime loans made up ONLY 5% of the entire mortgage loans in America, and of that 5%, only 6% of those loans were in trouble. The way the media reported on this subject should almost be considered criminal.

The story they failed to report on is the fact that big banks and mortgage companies got extremely greedy, started ignoring common sense lending practice, and loaned money to people who should never have qualified for a mortgage. They failed to report that the same banks and mortgage companies now bemoaning the loan losses they have to write down, also raked in huge profits during the boom. No, those stories just don't sell.

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Andi Durbin

Date: February 7, 2008

Doug Hall said:

The entire sub prime story was ridiculously blown out of proportion. Not one story reported on the fact that sub prime loans made up ONLY 5% of the entire mortgage loans in America, and of that 5%, only 6% of those loans were in trouble. The way the media reported on this subject should almost be considered criminal.

Andi responds:

I’ve been saying this for months now! The media says 3% of all mortgages are in default!!! The sky is falling! Well, that means that 97% of all mortgages are NOT in default. Even poor Countrywide – default rate of 4% - that means that 96% of their billions of dollars worth of mortgages are not in default…..

Then there is the argument that we didn’t complain when times were good. Well, our market has been bad for over 3 years. While all the rest of you were enjoying double digit value increases, we led the country in foreclosures. Where was the media then? It didn’t matter because we’re in the middle of the country in the wrong time zone. The media didn’t have to pay attention. Maybe if they would have, an alarm would have been sounded and the rest of the country could have been saved from some of this mess.

Andi

Mack and Andi Durbin, Brokers
Rooftop Realty
Serving Metro Denver since 1976
303-881-8844
www.rooftoprealty.com
Visit our blog at www.rooftopviews.com
30 years of doing whatever it takes

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Brad Paris Licensed Real Estate Broker, Villa Rica, GA

Date: February 7, 2008

I believe that the market will improve in the Atlanta market, lower interest rates will help, and hopefully the foreclosures will shrink by spring helping the resale market.

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Tom Scaglione Licensed Real Estate Agent, Lutz, FL

Date: February 7, 2008

Yes I think the article still stands Investors are back in the state because of the ability to pick up homes at rock bottom prices and sit on them for the upswing and make a profit.

.
Sincerely,
.
Tom Scaglione, ABR®, e-PRO®, REALTOR®
.
Avalar Realty of Tampa Bay, REALTORS®
1761 W Fletcher Avenue - Tampa FL 33612-1820
.
Off: (813) 969-0801 - Fax: (813) 969-0467 - Cell: (813) 310-8200
.
mailto:Tom@MarketingTampaBay.com
http://www.MarketingTampaBay.com
.
Serving Florida's Tampa Bay Area
.

From: Ronda Densford [mailto:ronda@jaxrealtoronline.com]

Tom - I noticed the dateline on that article was July of 2007. Do you still feel that the outlook for your market is the same? When that was written I don't think we knew the scope of the subprime problems or the fallout that would ensue. I have a referral in the works down there and would love to know if you think the author would still feel the same today?

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Linda Grissette Licensed Real Estate Broker, St. Charles, MO

Date: February 7, 2008

Judy, You mentioned that the media did "the same thing" when we had a
seller's market. Interesting. I don't recall any of us complaining about
that coverage. The real estate situation continues to unfold. If the media
were trumpeting the exact same details over and over again, I'd agree they
would be wrong to do so, but they aren't do that. The media is reporting on
developments in an ongoing, evolving story. Now, we may not like to hear or
read all that and it is negative reportage for the most part to be sure,
but it is true and it is news that the consumer should expect to hear and
see on TV and in the newspaper. Best Regards, Ed Hain

I'm not Judy, but I do remember that the media spent about 3 years of the
hot seller's market saying that people should watch out that the real
estate bubble was going to bust. And it seems like I saw some complaining
here on RT about that. So, yes, they "did the same thing" during the good
times and yes, we did complain!

Linda Grissette, JIM, GRI, LTG, ePRO Certified
Broker/Associate, River City Real Estate, St. Louis Area
Linda@Grissette.com http://www.FindStCharlesCountyRealEstate.com
All my products on sale until March 31 at
http://www.RealEstateMarketingHelp.com

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Phyllis Borchardt Licensed Real Estate Agent, Buckeye, AZ

Date: February 7, 2008

The story they failed to report on is the fact that big banks and mortgage companies got extremely greedy, started ignoring common sense lending practice, and loaned money to people who should never have qualified for a mortgage. They failed to report that the same banks and mortgage companies now bemoaning the loan losses they have to write down, also raked in huge profits during the boom. No, those stories just don't sell.

I think there is plenty of room for greedy home builders, home owners, appraisers and real estate professionals who also took advantage of the appreciation in home prices. Blaming only the banks and mortgage companies is a very narrow perspective.

Phyllis Borchardt, REALTOR® , e-PRO, CRS
phyllis@WestMarco-RE.com
RealEstate.com, REALTORS
cell 623-521-0790

efax 480-586-2280

Creating Repeat and Referral Business One Satisfied Client at a time!

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Paul@PaulJensenHomes.com

Date: February 7, 2008

Please Unless it's a national trend the national media does not. Regional
media -- maybe. Local media -- for sure. Also, there is a system by which
local stories are picked up by regional and/or national media. So, if a
local story is deemed significant to the overall situation, there's a good
chance it will make the national news. So, is a local bright spot in the
real estate market worthy of national coverage? I don't think so. However,
when we begin to see a trend in the direction of local recovery, it will
definitely become the national story. Best Regards, Ed Hain

Ed, you had asked me what I thought the media should cover and report
regarding market conditions. I don't have a problem with what is covered but
How it's covered. Let me try to illustrate from this statistic. In 2007 new
home sales dropped 26.4% in every part of the country except the northeast
which posted a small 1.6% increase. Our local CT paper would take this AP
info and print an article with a banner headline such as " New Home Sales
Slump in 2007" (inside the article you find the northeast was the
exception.......) instead of taking that info with this headline : Northeast
Escapes New Home Sales Slump in 2007. Which headline creates the most
accurate perception of the local market? particularly for those skimmers who
don't read the rest of the article. I believe the local media has an
obligation to present national data with a proper local perspective. Most
often they do not and that is my gripe.
thanks for your question,
Paul@PaulJensenHomes.com
Shelton,CT

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