By now you've probably seen headlines like this one. It's dramatic, it sounds like the world is ending for real estate, and it is just the kind of dramatic overstatement that makes me gag when I read the news. But have you actually READ the article? I've linked it to the headline.
Believe it or not, there's actually a lot of good news in there. The article explains that the percentage is based largely on the fact that multi-family home starts (apartments) are down, but in fact, single family home starts have stabilized. Here are two excerpts from the article which belie the headline:
"The much larger single-family sector actually stabilized in March at an annual rate of 358,000 units, the same level as February when single-family starts managed a small 0.6 percent rise."
"The bad news is that home construction is still in the tank. The good news is that single-family activity may finally be stabilizing," - Joel Naroff, an economist at Naroff Economic Advisers
So why the mixed message? No, wait, scratch that. Why the completely misleading, borderline outright lie of a headline? The answer is simple: bad news sells.
The media has adopted an attitude that no one wants good news. I am a fan of Fox News, which is where this article comes from. However, they are often just as prone to adopting this attitude as anyone else.
As a Realtor, I find it encouraging that apartment starts are down. This means that people are buying homes, and are less interested in renting. With low interest rates and low prices, the consumer is realizing that renting is not their only option.
Now, more than ever, it is extremely important that we perform as real estate educators, and not just salespersons. We have to counter this type of negativity, and make people aware that the sky is truly not falling.
Somebody get on the phone and tell Chicken Little he can come out, we're going to be OK. All we need is a healthy dose of reality. We've seen an increase in home sales in West Michigan real estate, and I'm doing my part to make sure the word gets out. You can help by reblogging and linking this blog to everyone you know.