There sure are a lot of people talking about the housing market lately. When you look at recent trends in the real estate industry, it’s easy to understand why there is so much buzz.
But it’s also important to understand the difference between information and misinformation. A home buyer in today’s economy will be bombarded with conflicting information from all sides. The market is good. The market is bad. Prices are climbing. Prices are dropping. It’s enough to make you crazy.
But you can keep yourself sane by knowing which information sources to take with a grain of salt. To that end, here are some people worthy of skepticism when it comes to the housing market.
1. President George W. Bush
The president likes to say that we are going through a “rough patch.” A bit of a hiccup, eh George? Now, I understand the need for positive thinking at such high levels. But a president who doesn’t recognize and/or admit a full-on recession … well, that’s just scary.
There are other reasons George W. Bush cannot be trusted on this subject. For one thing, the subprime mortgage lenders helped pay for his presidential campaign. Yes, the same lenders who helped drive the country into a foreclosure crisis.
For example, it is a matter of public record that Roland Arnall (a billionaire executive from the Ameriquest subprime lending company) was one of Bush’s top fundraisers. So any proposed legislation that would have curtailed the days of “subprime lending gone wild” met with stiff resistance from the then-Republican-controlled Congress and White House.
Ameriquest has also settled a lawsuit that accused them of deceptive lending practices. What does GW do? He appoints Ameriquest founder Roland Arnall to be ambassador to the Netherlands. Seriously, George? Are you sure you didn’t mean to say the “nether regions”?
So when you see President Bush or one of his mouthpieces talking about the economy as a whole or the real estate industry in particular … take it with a grain of salt.
2. Anyone From Fox News
Sorry, right-wingers, but Fox is the most biased, one-sided news program on television in the United States. Come on now, admit it. When is the last time you heard them say anything good about a democrat, or bad about a republican? Fox News also loves to crank up the shock value, and they are widely known for shaping the “facts” to suit their transparent agendas.
So when you see anyone from Fox News talking about the housing market in any way, shape or form … take it with a grain of salt.
3. The National Association of Realtors(r)
It always amazes me to see most news outlets in the country citing a nationwide drop in home sales, while at the same time the NAR proclaims a national rise in home sales. Now, I’m not accusing them of lying, but there is something to keep in mind here. Most of the data they use for their national “analysis” is proprietary data from within their own organization. In fact, the NAR just went through a prolonged lawsuit with the Department of Justice over the management of their data, and whether it violates antitrust laws.
So when you see this organization (who has a vested interest in home sales) reporting on the housing market … take it with a grain of salt.
A Final Word of Advice
In closing, I would also warn you against giving too much credence to the real estate commentary of your neighbors, your coworkers, your hairdresser, the checkout guy at the grocery store, or your sister’s husband’s former college roommate who knows a guy who knows a girl who once worked for a real estate company.
In real estate, as with everything else in life, there are many people who mistake their opinions for fact. There are also many people who skew the facts to serve some kind of personal agenda. And with the speed and reach of the Internet, it doesn’t take much to create full-fledged hysteria.
Dig deeper for the truth. Be a smart and skeptical consumer. Take what other people say with a grain of salt. Do your own research and form your own opinions. When somebody makes a statement about the housing market, ask yourself where their interests lie. Be a rational, free-thinking, intelligent individual. The economy can only benefit from having more people like that.
* Copyright 2008, Brandon Cornett. You may republish this article online if you retain the author’s note with active hyperlinks below.
Housing Market Commentary - 3 People to Ignore
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