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