BLOG: Is That a Fact?

Every morning my inbox is full of new emails with “today’s top headlines” in real estate: everything from market recovery, prices falling, sales are up, interest rates are down, banks are foreclosing, the sky is falling, the sky is blue, etc.

Some of them have a common thread, but others are completely contradictory.  Yesterday, I got one email that said this is “THE” year for REO sales. That’s short for real estate owned, or “bank-owned,” properties.  Three emails later, another one is titled, “The 5 myths of REO” and how I can educate my clients on the market and why they shouldn’t be holding out for more bank-owned properties.

These emails mean two things. One, a clever person can take a piece of information and spin it into a full story to suit his end goal…whatever it might be. But secondly, it reminds me that when we see “news” or “headlines” in real estate, even those that have the data to back it up, it’s not always accurate.

Or should I say, it’s not always applicable?

Because the reality is that nationwide headlines are taking mass statistics and trying to break them down into something that will make sense and grab a reader’s attention. But nationwide statistics don’t always reflect a local market, nor do they tell you what you need to know.

A local real estate market truly is very, very small when you want to know what’s really going on. Literally here in San Juan Capistrano, we have a different kind of supply-and-demand ratio than just a few miles away in Ladera Ranch. And those markets shift. ALL THE TIME.

The market in Las Vegas is completely different than it is in Orange County, which is completely different than Portland or Florida. There are a lot of variables. Some things are constant (like interest rates), but much of what drives sales or doesn’t is affected locally.

Bottom line, take all the information for what it is and what it’s intended to be…general. But when you want to know about your specific real estate market, always remember to ask a local Realtor, someone who works in the market everyday and has a good grasp on both the local inventory as well as the buyer demand. The big catchy headlines will give you broad information, but when you want the real scoop… well you know who to call!