The Media Does Not Control The Real Estate Market(The “doom and gloom” reports have become synonymous with the real estate market for about the last year.)
Every newspaper headline in the business and real estate sections and even sometimes the front page are reiterating the current financial woes of flippers and investors who joined the party late.
And within each newspaper, you can probably read an article about how the market will continue this imminent downfall and on the next page some industry expert may be explaining why the market correction is just about complete.
The real estate market has been and always will be unpredictable. But there are reasons why prices and sales rise or fall. The media should not be and is not responsible for the real estate slide, explains Peter G. Miller in the article, “Negative Media: Is It The Scourge of Real Estate?” which was published in the November 7, 2006 edition of Realty Times.
“The National Association of Home Builders has begun to offer a new PR kit for members to help pump up sales. The need for such an effort is obvious. As NAHB explains, the kit ‘provides a starting point for public relations campaigns to galvanize prospective home buyers who have been discouraged by negative reports in the media to go out and see for themselves the range of opportunities that have opened up in today's slower marketplace.’”
There is popular and growing belief that the media’s gloomy reports of the market and not the job market and affordability factor, is causing sales and prices to slow.
Obviously, the real estate market has flourished in the past few years with the median existing home price rising from $139,000 in 2000 to $220,000 this September, according to the National Association of Realtors (NAR).
“If it's true that negative news reports are causing the downturn of 2006, is it not equally true that ‘positive’ news reports must have been the sole and only cause of the booming real estate market seen during the past five years? If yes, shouldn't reporters and columnists get free houses or something for their good work?”
So, then it is necessary to assume that if the media fell off the face of the earth and did not report on the real estate market that the market would not be experiencing this downturn? Even though the public relies on most of its information from the media, they would probably notice that home prices were falling and available properties were staying on the market longer.
“Can it be the public follows in sheep-like fashion whatever it is that appears in the media?”
This market correction or downfall was inevitable as the booming years grew too lucrative and too much. The market is not slowing because of real estate writers.
“‘A faster-than-anticipated decline in housing following its unsustainable boom during the past three years has become a major drag on U.S. economic growth,’ said David Seiders, NAHB's chief economist.
That’s right. The NAHB’s chief economist said that the most recent boom was “unsustainable.” But if it makes you feel better, just keep blaming the media.
Back to Articles | 
