We are all familiar with the expression: "read between the lines". But what does it mean to read between media headlines as it relates to real estate? The purpose of a media headline is to "hook" the reader or viewer's attention. The headline lure is designed to get the reader to delve deeper into the printed material and the viewer to stay tuned.
Some recent print headlines that grabbed my attention are:
Washington Post, December 29, 2010: "D.C. area skirts home-price slump: Yearly Gain Leads Nation" by Dina ElBoghdady
Wall Street Journal, December 30, 2010: "Home Prices Are Still Too High: The Worst is Yet to Come" by Peter D. Schiff
Washington Post, January 1, 2011: "Stumbling along: National jobless count, higher interest rates may undermine D.C. area's gains" by Dina ElBoghady
Note that the first and third articles are by the same author. The first and second author are actually discussing the same document produced by the S&P/Case-Shiller Home Price report issued in the press release from New York dated December 28, 2010. How is someone to "read between the lines" and interpret these headlines? I liken it to headlines about losing weight: bottom line the message is: eat less and move more. The bottom line message for real estate headlines is: all real estate is local. It matters where the real estate is!
The S&P/Case-Shiller Home Price Indices follow 20 metropolitan areas that established the baseline value of 100 in January of 2000. Clearly some metropolitan market areas are further along in recovery then are others, specifically Los Angeles, New York and Washington DC have retained most of the price appreciation that occurred in the mid-2000 decade. According to the recent press release: "Each of these markets is more than 70% above their January 2000 levels." That sounds pretty hopeful to me, and yet the headline proclaimed that the worst is yet to come!
Interpreting the January 1st article in the Washington Post too requires deeper investigation, which primarily has to do with understanding the location of the real estate in question. The market area in which the Huckaby Briscoe Group primarily works sustained price recovery in 2010 of an average of 8.48% (2010 average sales price of $385,000 up from 2009 average sales price of $354,900), even though the actual number of transactions was down 5.7%. So it matters whether the headline is speaking of price or of number of transactions. Sales are down but prices are up, if you are a buyer or seller, which are you more concerned about?
The best source of understanding the local real estate market is an experienced and knowledgeable Realtor.
Karen Briscoe with the Huckaby Briscoe Group would be delighted to be of assistance. Please contact via the means most convenient for you: http://www.HuckabyBriscoe.com, 703-734-0192, Homes
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