What Are the Headlines Really Saying?

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Did you ever watch the news and wonder if you’re getting the full story? These days, I’m wondering if I want the whole story! But when it comes to relying on the main stream media, one things for sure, you’ve got to really look beyond the headline to get the full story.

Below is a slide with headlines about the market from June of this year. You’ll notice that Case-Schiller, Core Logic and RPX all had positive things to say about the real estate market, but those positives are not the full story.

What I continually talk about here locally on Long Island are the amount of homes for sale and what is actually selling in a given month. In my previous article, the May 2010 update, the numbers tell the story.

The Case-Schiller Future Price Index is a powerful tool for any homeowner who wants information about the market. The future of the real estate market is of course speculative, but the numbers these experts look at tell the story. And the inventory of homes for sale is still very high. When a homeowner talks to me about their opinion of when the real estate market is going to bounce back, I consistently refer to this diagram.

Now if you’re not a numbers person,you’re probably looking at this slide and saying, “What does all this mumbo-jumbo mean?” I hear you! But honestly, in looking at that diagram, you’ve got to pay attention to the fact that while the prices look to go back up after November 2011, they don’t go back up to 2005 levels…they go back to what prices are today!

So what does this mean? It means to me, that if I were really wanting or needing to sell my home, waiting around isn’t going to make things any better in terms of what I will get for the home if I sell it today. And if I wait, my goodness, in 2013, I’ll be getting the same price I would get if I sold it today! That’s important to consider…in my opinion.

Lastly, while I’m not one to base all my decision-making on what some economists say, I will at the least listen to what they think. After all, when you want to make an informed decision, you listen to the experts. This last slide shows that 56% of 106 of the best economists and analysts think the real estate market is going to decline further.

If you have any questions about the real estate market, please feel free to visit my fan page below. Additionally, you may call me for a private consultation at (631)831-9048.

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