{"id":9643,"date":"2009-09-05T08:30:47","date_gmt":"2009-09-05T15:30:47","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=9643"},"modified":"2009-09-05T08:32:27","modified_gmt":"2009-09-05T15:32:27","slug":"even-though-much-of-the-current-real-estate-news-is-really-just-hype-there-can-still-be-good-reasons-for-you-to-be-in-the-market","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9643\/even-though-much-of-the-current-real-estate-news-is-really-just-hype-there-can-still-be-good-reasons-for-you-to-be-in-the-market\/","title":{"rendered":"Even though much of the current real estate “news” is really just hype, there can still be good reasons for you to be in the market"},"content":{"rendered":"

This from my Arizona Republic<\/i> real estate column (permanent link<\/a>):<\/p>\n

Get a load of all that great housing news! Median prices are up! Sales volumes are up! The prognosis for the future? Up, up, up!<\/p>\n

Here’s a different take: If it looks, walks and talks like hype, it’s probably hype.<\/p>\n

Are houses selling well, compared to a year ago? They are — but the federal government is giving first-time home-buyers $8,000 in free money to buy houses right now. If that tax credit is not extended or replaced with something even more generous, the music will stop on November 30th.<\/p>\n

And while median home prices may be up, prices for homes that normal working people actually buy are flat at best — and they have been trending downward since December of 2005.<\/p>\n

But what about the shortage of available homes you have read about? What about the multiple offer scenarios, with homes selling for thousands of dollars over list price?<\/p>\n

What would you expect to happen when you artificially stimulate demand at the same time that you artificially limit supply? We should be doing what your grandpa used to call “a land-office business.” Instead, even with $8,000 in free money, prices are still trending downward.<\/p>\n

And that artificially-limited supply — all of the foreclosed homes that banks are withholding from the marketplace — will flood the market sooner or later.<\/p>\n

If you’re in the real estate market right now, what you should do depends on your circumstances.<\/p>\n

If you’re a seller, make a deal. Your carrying costs will almost certainly exceed any gain you can hope to realize by waiting out the market.<\/p>\n

If you’re a first-time home-buyer, jump. If you’re not under contract by October 15th, you’ll probably miss out on the tax credit — and houses are not easy to get, taking account of the artificially-limited supply.<\/p>\n

Buying with a loan? Interest rates are low for now, but they may not stay that way.<\/p>\n

Buying all cash? Sit tight. As sweet as prices look right now, it seems likely they’ll get a lot sweeter when the banks finally release all the homes they’ve been hoarding.<\/p>\n

 
Spread the word:<\/em><\/strong> Click here for a <\/a>Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This from my Arizona Republic real estate column (permanent link): Get a load of all that great housing news! Median prices are up! Sales volumes are up! The prognosis for the future? Up, up, up! Here’s a different take: If it looks, walks and talks like hype, it’s probably hype. Are houses selling well, compared […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,26,6,5],"tags":[],"class_list":{"0":"post-9643","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-investment","7":"category-lending","8":"category-marketing","9":"category-real-estate","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":324,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/324\/republic-year-over-year-median-prices-down-in-some-areas\/","url_meta":{"origin":9643,"position":0},"title":"Republic: Year-over-year median prices down in some areas . . .","author":"Greg Swann","date":"September 12, 2006","format":false,"excerpt":"Here's the Republic's read on yesterday's housing numbers, a much more dire interpretation:Valley home prices dipped again in August, even falling below last year's levels in some areas. It is the first time since the Valley's housing market turned red-hot in late 2004 that the monthly median price of existing\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1136,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1136\/were-not-mensa-members-but-real-estate-is-a-dream-job\/","url_meta":{"origin":9643,"position":1},"title":"We’re not MENSA members – but real estate is a dream job","author":"Russell Shaw","date":"March 11, 2007","format":false,"excerpt":"The following was on the front page, just under the masthead of Sunday's Arizona Republic: Home Values rise despite slowdown Despite falling prices by year's end, leftover momentum from the Valley's housing boom pushed 2006 values above the previous year's values in almost every city. Median price increases in Maricopa\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"Not MENSA","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2007\/03\/Not%20MENSA1.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":59,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/59\/another-news-drought\/","url_meta":{"origin":9643,"position":2},"title":"Another news drought?","author":"Odysseus","date":"March 19, 2006","format":false,"excerpt":"Catherine Reagor in the Arizona Republic asks, \"Another price dip?\":Valley resales figures for February are due out this week. And early analysis from Arizona State University's Real Estate Center shows the median price might have dipped slightly again. In January the median price of all resales was $257,000. They hit\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":622,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/622\/phoenix-area-single-family-homes-down-one-percent-from-october-2005\/","url_meta":{"origin":9643,"position":3},"title":"Phoenix-area single-family homes down one percent from October 2005?","author":"Greg Swann","date":"November 9, 2006","format":false,"excerpt":"ASU's Dr. Jay Butler's housing numbers for October 2006 have been released:The Valley's single-family home-resale market clicked higher in October though sales are well off from last year's frenzy. There were 4,985 sales in October, up slightly from 4,875 the previous month but down nearly 41 percent from October of\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":199,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/199\/butler-prices-down-sales-up-logic-sideways\/","url_meta":{"origin":9643,"position":4},"title":"Butler: Prices down, sales up, logic sideways . . .","author":"Greg Swann","date":"August 11, 2006","format":false,"excerpt":"Catherine Reagor in today's Republic:Home prices dipped slightly in July, but sales inched up from June. The median home price of a used Valley home fell to $264,900 last month, after climbing to a record $267,000 in June. There were 5,545 resales in July, compared with 5,460 the month before,\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":747,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/747\/price-downturn-less-than-scary\/","url_meta":{"origin":9643,"position":5},"title":"Price downturn less than scary","author":"Greg Swann","date":"December 8, 2006","format":false,"excerpt":"This is me from this morning's Arizona Republic (permanent link). I wrote this on Monday, and since then the end of the month errors in the MLS have been corrected, so the percentages in the fourth paragraph have been revised to reflect the changes. Price downturn less than scary Here's\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/9643","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=9643"}],"version-history":[{"count":1,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/9643\/revisions"}],"predecessor-version":[{"id":9644,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/9643\/revisions\/9644"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=9643"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=9643"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=9643"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}