| Looking at the headlines for the last four months about | | | | two months. You won't see a headline that says |
| housing is really depressing. However I have noticed | | | | Prices Only Drop 2.7% Sales on Rise.If I were a Buyer |
| that the bodies of the articles and the headline are | | | | or Seller reading all the headlines I'd be leery of this |
| often at odds. This made me wonder how many | | | | market. Buyers are worried that if they buy the price |
| people make their housing decisions based on the | | | | will drop and they will look silly for buying in a down |
| headlines instead of the articles. We are a nation | | | | market. Sellers are concerned that if they sell now |
| addicted to the quick. A vast number of us get our | | | | prices 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 condensed | | | | to 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 you | | | | Real Estate market has been slow for almost a year. |
| don't find until the second paragraph is that the drop is | | | | The Bubble bloggers are praying prices drop to 1995 |
| from September of 2005. Not mentioned is that home | | | | levels but that's not likely to happen. Sellers are waiting |
| sales in 2005 were the highest ever recorded. Also | | | | for prices to increase 50% and that's not going to |
| down in the body is that "Unsold inventory is holding | | | | happen either. Here is what has happened. Prices |
| steady and is close to the long- term historic average | | | | have declined and inventory is up with many housing |
| of a normal market". So why isn't the headline Market | | | | choices. Sellers will negotiate price and terms. Interest |
| Reaching Historic Average?Another article headline | | | | rates are very low. 30 year fixed rates for loans less |
| says: Home Price Fall Sharpest in 35 Years! What you | | | | then $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. Half | | | | and lots of choices but people are not buying. So why |
| way through the article you find that overall prices are | | | | are people waiting? I think people are afraid. |
| down by only 2.5% and sales activity is up for the last | | | | |