The mainstream media, hungry to proliferate the most negative news possible, is struggling to see an actual housing double dip. So cnbc.com has decided to just go ahead and call the “double dip“.
Here are excerpts:
Sellers on the market today have cut $29 billion off their collective home equity. (they didn’t lose equity, their list prices were too high!)
They say today’s buyers are only looking for great deals, so if you price the home at its actual value, nobody’s interested. You have to go below. (huh?)
Some of you responding on the blog yesterday said that your markets are just fine, even seeing competition in offers again; I’m sure this is true in many local areas. The trouble is that those areas are in the vast minority. Unless we see a marked, widespread increase in home sales over the next several months, prices will go from flat to down once again.
The last sentence is old-school, and today’s market environment is going to continue to baffle those who can’t shake off the past.
1. To begin with, we don’t have an accurate way to measure pricing when some houses/areas sell for more, and some sell for less. The Case-Shiller is too general and vague for me. But that’s not stopping Diana from talking her book, insisting that prices will be going down.
2. Regarding her last line, in today’s world we CAN have sales can go down and not affect pricing. Why? Because no one HAS to move. If you are in distress, you can stop making your mortgage payment and stay for a year or two. Back in the day when banks would foreclose on you, it was different – we had regular market clearing. Not now.
3. If the housing market got worse, the government will create a new basket of cheese.
Considering Dataquick’s report yesterday on the August sales, our market is looking pretty good. When all we’ve been hearing about is the lack of demand, in San Diego County it seems there were plenty of sellers who were able to get their price right:
The housing double dip, and for that matter, ALL real estate market conditions should be discussed on a case-by-case basis. It’s local!
(hat tip to clearfund for pointing this one out!)