How Can It Always Be a Good Time to Buy Real Estate?
January 16th, 2009 categories: Real Estate Industry, Real Estate Market
I heard the National Association of REALTORS’ “It’s a Good Time to Buy” campaign today, again.
The marketing campaign has been around since 2007 in some form and I’m wondering if it has done anything to bolster buyer confidence…which I think was it’s intended goal.
It’s not as if consumers don’t get that the National Association of REALTORS (NAR) represents REALTORS and their interests - not those of average Sue and Bob Home Buyer. Buyers I work with either don’t pay attention to what NAR has to say, don’t know who the heck they are or are skeptical of anything NAR and REALTORS in general have to say.
Whether the campaign was in anticipation of or in response to negative media attention, average home buyers have been doing what they always do, buying houses because they need a place to live and want to feel good about owning their own home. They are completely oblivious to NAR’s message.
NAR doesn’t have credibility as a media source so coverage for the last two years has been negative - NAR is somewhat responsible for this. David Lereah, NAR’s former chief economist has officially admitted to issuing “optimistic forecasts” under pressure from NAR’s leadership, including such beauties as, “It appears we have established a bottom,” which he announced in January of 2007.
But kind of like the Federal government, NAR has wanted to be seen as “doing something.” Sometimes, doing nothing is better than the wrong thing.
Is it as good a time to buy a house today as it was in 2007? Better? Worse?
The answer to the question,”is it a good time to buy real estate?” has always been and always will be - maybe, it depends.
While the message of NAR’s campaign is one that I agree with - because it is a good time to buy for some people - I’m not sure the message is effective.
Do you want to buy a home? Need to buy a home? Can afford to buy a home? Does it make more sense for you to pay a mortgage than rent?
Only you, my young padawan, can answer those questions. You don’t need a marketing campaign or the media to tell you what to do.
Take the time and do some homework yourself - find out about interest rates, home prices, your credit and whether buying a house makes sense for you now.
And now, for your listening pleasure…
The Last Shadow Puppets - My Mistakes Were Made For You
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The Real Estate Love Affair Continues?
The past ten years were not normal and trade groups are trying to perpetuate the psychology that has made them so profitable. They have not gotten the message yet that mortgage qualification standards have changed and jobs are evaporating. All they know is the sales pitch- they don’t know how to manage macro economics.
A love affair, absolutely. But what Americans don’t have is a taste for the rewards of hard work and frugality. It will take some time for that notion to get into American psychology. And if it never does, well- those who can’t maintain good credit and who can’t save 20% can not own a home.
Better for them to move into rental property management as the McMansions of today will be the multi-family rentals of tomorrow.
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