Real Estate: Do numbers and stats matter?
Reports: facts or psychological manipulation?
Whether you watch CNBC or CNN, read the NY Times or Wall Street Journal – you’re constantly bombarded with “reports” about the state of pretty much any financial market (stocks, bonds, real estate, etc.)
But are those numbers and trends reported accurate? Or just spun to potentially influence investors one direction or another?
One such example was last month’s report from the National Association of Realtors – who proudly proclaimed that existing home sales jumped 10% in September.
However, you read what the realists over at ZeroHedge had to say about said report – and you’ll quickly see another side to the story.
If you want an idea of what the real world is seeing and thinking – check out the comments in that ZeroHedge article – and you’ll read sentiments that would never make your evening cable news broadcast:
- (re: 10.7 months of supply) – “Just because the properties don’t have “for sale” signs in front doesn’t mean they aren’t on the market. I know for a fact that you can purchase one in the NY minute by contacting the bank. But they aren’t counted as “supply” because they aren’t officially “for sale”.”
- (re: “the stats”) – “10.7 months assuming BEST CASE scenario like 2006 real estate bubble mania days? The ‘10.7 month supply’ means nothing at all, no context! A 10.7 month supply of homes today could be 10 homes!!”
- (re: what the “media” reports) – “CNBC posted an article earlier today that said, basically, that as soon as the housing market hits the real bottom, then it will start rising again. I wish I could get paid to write stuff like that ….I’d be so rich!!!!”
- (re: dealing with it all) – “When all of these people wake up, turn their back on the system and tell their children not to participate in the scam of debt slavery then a real change will happen.”
Does anyone else understand how potentially grave our financial situation is? Or are they too busy entertaining themselves?