The media coverage of housing is horrible. When the housing market was booming, we were warned of a “bubble.” When the boom finally slowed, we were warned it would be a disaster. It’s like the housing market is never good. It’s either bad or it soon will be. Even as a strident pessimist, I can’t muster that much negativity. And that “bubble” talk actually started before 9/11. If you had paid attention to it, you would have missed quite a boom.
The Arizona Republic is ever at the ready with local examples, of course. Especially on Saturdays, it seems, thus, possibly, to try to kill the busiest day of the real estate week.
Today is no exception, with a girthsome celebration of FSBObesity, but Jonathan Dalton and Jay Thompson have the paper’s number.
Technorati Tags: arizona, arizona real estate, compensation for buyer representation, phoenix, phoenix real estate, real estate, real estate marketing
Doug Trudeau says:
Gregg – Nice refelction on Jays article. Congradulations on your ranking in Alexa. You give the rest of us something to strive for.
June 2, 2007 — 10:06 am
Robert Kerr says:
The fat times are over – at least for now – and to scapegoat the media is disingenuous when simple economics explain everything in this cycle so neatly and elegantly.
At some point we all have to face the current market realities. It’s not 2005 anymore and our customers aren’t beating down our doors for the privilege of buying a house.
The media didn’t cause this and it’s just plain juvenile to try to blame them.
Markets change. Adapt!
June 2, 2007 — 10:19 am
Robert Kerr says:
Oh, I almost forgot!
Yes, I do think that real estate reporting stinks. With few exceptions, almost every article I come across is factually and obvioulsy incomplete, sometimes missing critical facts and data essential to the topic. [ That includes NAR press releases. Could they possibly be any more transparently self-promoting and one-sided? ]
Remembering that the target audience for the general media is the average American, with his average IQ of 100, that may explain everything.
June 2, 2007 — 10:38 am
Jeff Brown says:
Robert – I think Greg’s point is that in the good times many years ago the media was already hyping a crash, or bubble. Now that the correction is here, they’re standing pretty much in public with their pants around their knees. Where’s the huge bubble?
The point I take from this post is how the media pretty much avoids facts to scare readers – which is what they’ve decided sells papers. Where do you think the phrase, ‘if it bleeds, it leads’ came from for heaven’s sake?
The same media has been saying since 2001 that interest rates will be on the rise soon, and go very high. Now interest rates are showing signs of moving up, and you’ll begin reading ‘we told you so’ from the media.
Just remember, you didn’t find out the truth about Dan Rather from the media, but from blogs. The media prints what they choose to accomplish two things:
Sell papers and move their own agendas forward. This isn’t rocket science.
June 2, 2007 — 12:55 pm
Jay McGillicuddy says:
Greg,
When I was New Hampshire’s state REALTOR president elect in 2003 the press started calling me wondering when the bubble would burst. I kept saying what bubble? They would say they would call someone else to get the info they needed. My presidency was 2004 and the bubble burst here in September of ’05 and they still called me in the spring of ’05. Still searching for a story.
The press seems to only print what they want to hear not what you say. I am not a fan of the press.
June 2, 2007 — 2:59 pm
Robert Kerr says:
Robert – I think Greg’s point is that in the good times many years ago the media was already hyping a crash, or bubble.
That’s not what I saw. From 2000 until 2005, I saw the media hyping 25% annual growth, stories of blue collar workers turned into instant millionaires, enticing families to take on suicide loans to buy homes they could not otherwise afford and flippers making $50K in 4 weeks (those shows are still on TV!).
Now that the correction is here, they’re standing pretty much in public with their pants around their knees. Where’s the huge bubble?
Where’s the bubble?! Jeff, there’s one heck of a correction underway here.
June 2, 2007 — 5:41 pm
Chris says:
A broken clock is right twice a day. Thats how I feel about the media’s reporting on real estate. The sky is always falling, interest rates are always rising, and home owners are always victims.
June 2, 2007 — 6:00 pm
Jeff Brown says:
Robert – I agree with you. But you ask me the rhetorical question, Where’s the bubble?! Jeff, there’s one heck of a correction underway here.
Right again Robert – a correction, but in no way a bubble. An example of a bona fide bubble would be the tech crash six years ago when NASDAQ fell by almost 50%. We haven’t seen anything close to that in this correction. You’re right in your choice of words – this isn’t a bubble, it’s a correction.
June 2, 2007 — 7:36 pm