Real Estate Headlines and the Truth

The Enormous Divide Between Real Estate Headlines and the Truth

In today’s day and age, real estate headlines make it challenging to differentiate between positive and negative news about the market. More often than not, the media highlights the negative information over positive information. Some might even call it “fake news”. If you work with a real estate professional, they can help you navigate your way through all the information and provide you with facts about the real estate market to help you make an informed home buying decisions.

Headlines

 

“I have observed that not the man who hopes when others despair, but the man who despairs when others hope, is admired by a large class of persons as a sage.” – John Stuart Mill (1840s)

Even back in the mid-1800s, people knew that negative news sells. That is still true today. All forms of media realize that they will get more eyeballs, clicks, likes, and engagement by posting something negative. However, they must realize that negative headlines impact markets.

Just last week, the National Association of Home Builders released a survey revealing:

“Negative media reports making buyers cautious was a significant problem for 48% of builders in 2018, but 62% expect it to be a problem in 2019.”

Even today, the good news is headlined with a negative spin in order to get attention. Here are two recent examples from mainstream media:

Actual Headline #1Cash-out refis are back – will homes become ATMs again?

The real story: The headline is accurate – to a point. It is true that the percentage of refinances in which the homeowner received cash at the closing has increased to levels that existed in 2006. However, the actual amount of equity homeowners “cashed-out” compared to a decade ago isn’t close.

The dollar amount cashed-out last year was $63 billion. That seems like a really large number until we compare it to 2006, when homeowners cashed-out $321 billion. That is more than five times the current amount.

In 2006, people did use their homes as ATMs. They purchased new cars, boats, and lavish vacations. Today, the cashed-out equity is being used to consolidate debt, as seed capital for a new business, or to help a child with their college tuition.

Actual HeadlineConsumer Debt hits $4 Trillion. Americans are diving deeper and deeper into debt.

The real story: The first sentence of the headline is accurate. The second sentence couldn’t be further from the truth. Total consumer debt is the highest it has ever been. That’s because the population continues to grow, and so does the economy (prices and wages).

The important number is how that total debt ranks as a percentage of disposable personal incomeThat percentage is the lowest ever recorded!! People are not “diving deeper and deeper into debt”. The exact opposite is true. They have less debt now than ever before.

Bottom Line

If you are thinking about buying or selling a home, it is important that you have a true professional handling your real estate needs. Someone who knows the truth about the current economy and its potential impact on the housing market.

beach homesView Southwest Florida Real Estate Headlines:

Begin Your Own Search for Southwest Florida Properties:

So, if you’re ready to begin your search for a South Florida Luxury Golf Property or your dream home or condo, we encourage you to explore our website to find information about homes in the area.  If golf is your game, we specialize in golf community real estate and would be happy to help you navigate the more than 150 different golf communities to find the best golf properties available.  If you prefer a more direct approach, we will provide a list of golf homes that meet your criteria and/or communities that meet your needs. For more information about the golf homes or golf condos in southwest Florida please reach out to us directly!

Private golfConsidering Selling your home?

If you are looking to sell a home in Bonita Springs, Estero, Naples or Ft. Myers, we encourage you to work with a REALTOR® who has the experience and knowledge to provide an accurate market comparison so you can determine the right asking price. If you live in a golf community in southwest Florida, you are competing with more than 150 other golf communities.  Contact us today to learn how your home or condo stacks up against the competition and how we can position your property to sell quickly and for a fair price.

Bottom Line:

If you’re looking for a focused and goal-oriented Realtor in southwest Florida who will help you achieve your Real Estate needs, please reach out to me directly. Additionally, if you are looking for a golf community expert or you are considering buying or selling a home, a luxury home, luxury vacation home, luxury golf home or dream home, call me or text me on my mobile phone at 239-370-0892 or email me at Matt@NaplesGolfGuy.com

About Matt Klinowski, PA


Naples Golf GuyThe above information about Real Estate Headlines and the Truth was provided by Matt Klinowski, an expert in Southwest Florida real estate.  When you are ready to buy or sell a single family home or condo in Naples, Bonita Springs or Estero, contact me. With almost 20 years of experience, I can help provide the market information and insights into individual communities to help you find the perfect home.  Most importantly, I will handle all the negotiations to make your real estate transaction as smooth as possible.

Contact Matt:  Matt@NaplesGolfGuy.com

or at 239-370-0892

March 29th, 2019 Posted by Matt