Today’s hyperbolic statement comes from, ironically enough, that venerable hard news source – the Today Show. Normally, I watch CNBC and the wife watches NBC. Unfortunately, no Squawk Box on Saturdays.
Lester Holt’s (I think that’s correct) teaser was – “Today’s housing market is the worst in history,” and then proceeded to tease a cell phone service that would help you sell your house. Ah, if only it was that easy! The worst in history? I don’t buy it. Not what it used to be? Sure. Do your own due diligence; two-minute segments on network TV typically don’t provide the thorough analysis needed to assess the housing (or any) market.
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The worst in history? No, not yet. The possibility of becoming the worst in history? Yes, most definitely. What could have been a cyclical downturn in 2003 or a sharp reversion to mean in 2004 has been allowed to continue through loose lending practices. This is a credit crisis that expressed as a housing boom. That fuel has been burned. The MSM doesn’t report little stories so when they get a little story they treat it like a big one but even the blind squirell gets the occasional acorn.
For many markets, it will be the third best year in history. I think the TV media has a lack of respect for history. History is whatever their 23 year old assistant producers remember it to be hopped up on No-Doz, booze, and drugs. (Hey, hey… I was in college for awhile, I remember only what I remember)
The bad news that has been reported has not matched the reality of the bad news. I’m not cheerleading the economy or the housing market by any stretch and I also realize that everything financially works on cycles. There could be tough times ahead for the RE profession… or it could just return to normal after a couple of whacky years.
I do think that there will be pain, there will be a hangover. My hope is that someone by now has forced Chaser down the throats of the housing market so that it limits the pain and the length of the hangover.
Well-said. and very true. I don’t know on which day I heard it on CNBC, but referencing the new CPI report, it said that spending had risen along with borrowing on credit. Unfortunately, we as a people seem unable to live sufficiently within our means, and the housing boom has most definitely fueled that.
The next 18-24 months will be telling, and will be proof that housing was and should be considered a long-term investment.