Is Headline News Making Your Real Estate Decisions

Looking at the headlines for the last four months abouttwo months. You won't see a headline that says
housing is really depressing. However I have noticedPrices Only Drop 2.7% Sales on Rise.If I were a Buyer
that the bodies of the articles and the headline areor Seller reading all the headlines I'd be leery of this
often at odds. This made me wonder how manymarket. Buyers are worried that if they buy the price
people make their housing decisions based on thewill drop and they will look silly for buying in a down
headlines instead of the articles. We are a nationmarket. Sellers are concerned that if they sell now
addicted to the quick. A vast number of us get ourprices will go back up and they will look foolish for not
news from headlines on our home page or CNN.waiting until the market changed. People are truly afraid
Articles take time to read; we need the condensedto make a decision about housing. People would rather
version.One headline in red bold point type is: 31.7%make a mistake about a spouse then a house!The
Biggest Drop in CA home Sales 24 years. What youReal Estate market has been slow for almost a year.
don't find until the second paragraph is that the drop isThe Bubble bloggers are praying prices drop to 1995
from September of 2005. Not mentioned is that homelevels but that's not likely to happen. Sellers are waiting
sales in 2005 were the highest ever recorded. Alsofor prices to increase 50% and that's not going to
down in the body is that "Unsold inventory is holdinghappen either. Here is what has happened. Prices
steady and is close to the long- term historic averagehave declined and inventory is up with many housing
of a normal market". So why isn't the headline Marketchoices. Sellers will negotiate price and terms. Interest
Reaching Historic Average?Another article headlinerates are very low. 30 year fixed rates for loans less
says: Home Price Fall Sharpest in 35 Years! What youthen $417,000 are 5.78% and jumbo fixed rates are
don't get until the third paragraph is that this number (6.1%. This is an amazing market with great financing
9.7%) is for Nationwide sales of new construction. Halfand lots of choices but people are not buying. So why
way through the article you find that overall prices areare people waiting? I think people are afraid.
down by only 2.5% and sales activity is up for the last