OK, so it's a challenging real estate market right now, I can except that fact. But what drives me NUTS is how the News Media always slants their articles to the negative side. Makes no difference whether it's CBS, ABC, CNN, Fox News, or the KC Star - it's all the same.
It's my personal belief that it's not as bad as they would have you believe and if they'd just lay off the negative news for a few months, the general public might realize this.
Let me give you an example below. My thoughts are in RED.
KANSAS CITY, Mo. (AP) — Existing home sales in the Midwest tumbled 23 percent in November compared with a year ago as accelerated job losses, Wall Street weakness and dwindling consumer confidence forced more people out of the housing market, the National Association of Realtors said Tuesday. Yes, it was a tough month in November 2008, but it's ALWAYS a tough month to sell a home right before the holidays. Also, just because home sales were down 23 percent, doesn't mean people couldn't sell their homes. It could mean there were 23% less people that actually put their home on the market this year vs. last year. That's actually a GOOD thing if your home is on the market. Less competition means higher prices! I guess they forgot to mention that part.
The median sale price in the region declined 11 percent to $142,400. Doesn't sound good, does it? I suppose that means ALL homes are worth less, right? Then how did I sell two of my listings in November at FULL PRICE?
Nationally, by comparison, home sales fell 17 percent, without adjusting for seasonal factors. The median price decreased 13 percent to $181,300. The key wording here is "adjusting for seasonal factors". Guess what? If they don't adjust for seasonal factors, then next May, June and July will look like the best year we've EVER had in real estate! Every year more homes are sold in the summer months than in the winter months. You have to adjust for seasonal factors! I'd be curious to see if the articles we read next Summer WILL say "adjusted for seasonal factors". Anyone want to take that bet?
In the Midwest, home sales fell in all 12 major metro areas tracked in The Associated Press-Re/Max Monthly Housing Report, also released Tuesday. The report analyzed home sales recorded by all real estate agents, regardless of company affiliation, in the metropolitan statistical areas. Again, were there less homes sold because there were less homes on the market? Tell me those numbers too.
The lone city bucking the trend was Des Moines, Iowa, where prices nudged up 1.4 percent to a median of $152,000. But home sales tumbled 34.5 percent. Now here we do find out that some cities numbers are increasing. I wonder if there were less homes on the market in Des Moines creating less competition and thereby creating more demand for the few that were on the market? I guarantee it.
"The (lower) interest rates aren't helping as much as we had hoped," said Russ Graber, a Des Moines agent with Coldwell Banker. "My guess is you're going to see more refinancing than people moving. I don't think people are going to want to put on more debt." Yes, since rates have dropped into the low 5 percent range in December, we're seeing lenders get flooded with new applications for refinancing, but there are plenty of people that now realize this is the perfect storm. Now is the time to move up to a bigger home and now is the time for first time home buyers to stop renting and start buying. I completely disagree with this agent's opinions.
Graber said he's seen both ends of the spectrum. He recently sold a $400,000 unfinished home for $250,000. Meanwhile, his office has also sold two $500,000 homes near their list prices in the same weekend. Key word is "unfinished". This is a home builder that went under and was forced to give an UNFINISHED home back to the bank. I can show you a dozen of these "deals" right now if you can get another bank to finance you through a construction loan. Good luck with that. This is a perfect example of how they put a negative spin on this.
"There's no rhyme or reason," he said. I'd agree with this statement though, but my statement would be "There no rhyme or reason why more people don't by new homes right now." I guess you could follow the crowd and wait until we're back in a sellers market again. You'll be more likely to get top dollar for your existing home, but you'll also pay top dollar for the next home too. You also risk getting a higher interest rate too.
You want to know the truth about this market, then read this posting: http://www.ronnietherealtorblog.com/ron_henderson_associates/2008/12/moving-up-in-kansas-city.html
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