My my, aren’t those real estate headlines wonderful? You would think the real estate market was kicking butt with all the proclamations thrown about. One of many email newsletters I receive had a whopper of a headline just the other day. I read it three times and did not immediately swoon over my coffee. Read and consider if one might presume all of our troubles were finally over.
First, let us recall that all real estate is local. A hot market in some distant city does not say a word about our hometown. Things are looking up in many areas, including here in Santa Fe, but a breathless headline as shown above is guilty for lack of relevance. In tones meant to get us away from our computer screens and into action, we might be sorry if we miss this new wave of appreciation.
Also, if you are a new blog visitor and reading your first post, sometimes a bit of humor finds its way inside. It’s all good.
Prices see record-breaking increase in April means exactly what? Well, April is one month. One of twelve. It is the 4th month of the year and springtime, which is famous for optimism and visions of growth and prosperity. All baseball teams are in first place on the first of April. And all seeds planted will produce a bumper crop. But one month does not make a year, nor a market trend.
New home sales highest since 2008? Yes, probably true in most markets around the country. That’s a good thing for sure. We have lost many new home builders and craftsmen and lines of credit. So to see sales of said new homes at their highest since 2008 is good news. By the way, tell me who can borrow money to build a new home and where did they get the loan approved? Come on, fess up.
We did not have far to go to surpass new home sales from 2008. Let’s look forward to the day we match 2007, and then forward still further until we can catch up to 2006. What is my point? Do I think we should not celebrate success? Hardly the case, but I defer to perspective.
Ah yes, the old Consumer Confidence Index. We apparently have surged to a 5 year high! What does that tell you? Does that mean that consumers are spending again? What are they buying? Big expensive weddings? New cars? Expensive gasoline to take a summer sojourn? What about homes? Are they buying homes? Well, yes, home sales are up. We can track that improvement here in Santa Fe. But isn’t consumer spending what helped fuel the fire that burned so many consumer’s life savings and equity? Are we saving like never before?
We should always be positive thinkers and point out the good news. We should also report the truth. One might be diligent and actually read behind the headlines now and then. Most will not dig any deeper than that. So be ready for them when they tell you things are wonderful, record-breaking and fantastic. Don’t argue, just discuss the facts.
Plenty of facts here, by the way. Have you seen the stats I publish? Can’t make that stuff up!
If you would like an answer to my question “just what is going on here anyway?” contact me today. firstname.lastname@example.org gets it done!