Bill Morris: Home prices UP? DOWN? Pick your facts?

Home prices UP? DOWN? Pick your facts?

Earlier this week a report by Zillow produced a flurry of "news" stories predicting a second housing crash.  Yesterday I posted Are home prices falling? to point out that even if prices have been falling in other places Austin residential real estate continues to outperform most other major U.S. metropolitan areas.

Today, RISMedia published an article offering a more complete, and accurate, view:

Existing-Home Sales Rise in Most States in First Quarter

That piece includes an important bit of wisdom from Lawrence Yun, chief economist for the National Association of REALTORS®:

"The reading of quarterly price data can be volatile because they are based on the types of homes that are sold during the quarter. When buyers principally purchase distressed properties in a given market, the recorded prices will be very low, which is what we're seeing now in much of the country," he says. "Annual price data provides a better guide about the direction of the market in those areas."

It is disappointing how respected publications knee-jerked to the "sky is falling" conclusion based on one report from one source, when other information is readily available.  Aside from pointing out the fact that the Austin/Central Texas market has experienced the past four years very differently from most other large cities, I have been writing through much of that time to counter the wild swings in daily "it's up - it's down - who knows where it's going" journalism about the housing industry.  Sure NAR has a dog in this hunt, and I have not always agreed with their market interpretations or their political positions, but I am confident that NAR provides a calmer, more objective viewpoint on this subject than the other articles earlier this week.

Bill F. Morris, ABR, CRS, CDPE, e-PRO, MBA
RE/MAX Capital City
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Comment balloon 2 commentsBill Morris • May 12 2011 12:19PM

Comments

I always think it's a clear sign of a "transition" moment, between markets, when "everything" is out there...up/down, good/bad...just means it's active and starting to move.

Posted by Li Read, Caring expertise...knowledge for you! (Sea to Sky Premier Properties (Salt Spring)) over 8 years ago

I agree, and the peaks and valleys in supply and demand seem to be signs of a market on the way to recovery.  There is a kind of frantic tone in too much of the media, but "this too shall pass."  Thanks for reading and commenting.  Have a great summer and a great year!

Posted by Bill Morris, ABR, CRS, CDPE, ePRO, MBA (RE/MAX Capital City) over 8 years ago

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