It seems every day now, either in the newspaper, television or Internet, a headline proclaims the collapse of the real estate market. Most times these headlines are far more sensational that the actual stories they’re supposed to be about. A case in point is a recent MSN video that proclaimed, “Countrywide bankruptcy possible says leading expert.” The expert interviewed was actually explaining all the reasons why Countrywide would survive. Only after the third time the interviewer persisted in asking if bankruptcy was possible did the expert allow that it was theoretically possible, before stressing again why it was very unlikely. The sensational headline might be great for getting someone to click on the link and generate ad revenue. But accurate? Hardly.
Take another recent headline in the paper: Foreclosure Sales up 784% in 2007. Well, that’s accurate. But is it catastrophic? Consider this: A search of tax records by First American Title showed a total of 166,562 houses and 32,323 condos in Ventura County. That equals 198,885 homes, and from that amount there were 548 foreclosures in the first half of 2007. In other words, 99.72% of homes weren’t foreclosed on. Admittedly, that doesn’t make a very exciting headline—no matter how true it is. On the other hand it’s also not a very good reason to panic.
Reading today’s headlines can give you a very warped perspective on what’s actually happening in the real estate market. Homebuyers are seeing fantastic opportunities and great home choices. Interest rates are moving downward and there are plenty of loan programs available. For move-up buyers looking for a larger home, it’s far easier to get the dream home you want now than it is was when the market is red hot. I know; last month I sold my current home and bought a home that would have been out of my reach in a “better” market. (As if having to pay over the asking price competing against offers from 10 other buyers is really a “better” market!) If you’re out there on the sidelines, call a Realtor and dip a toe in the pool. You may find this market is better for you than you thought.
11-01-2007
