Check out my latest article on Avid Builder. In it, I pick apart the case that the New York Times and Time Magazine make: that the housing market is down for the count. Please help get this article to as many people as possible. For every person that has read the doom and gloom reports from the New York Times and Time, we need two people to read this one so we can set the record straight.
Do you agree with me or do you agree with the media? Let me know in the comments!
[...] This post was mentioned on Twitter by Jeff Shore, Jason Forrest. Jason Forrest said: Jason versus New York Times: http://jasonforrestspeaker.com/blog/2010/09/03/jason-versus-the-new-york-times/ [...]
[...] This post was mentioned on Twitter by Jeff Shore, Jason Forrest. Jason Forrest said: How the New York Times and Time Magazine Got it Wrong About Housing – http://tinyurl.com/349skly [...]
It may not be David and Goliath, but I'm glad SOMEONE is taking Time and The New York Times to task for AGAIN writing an article about the sky falling! Why are they always trying to sell the hype?? You can't keep the American Dream of owning a home down…it's un-American!! I guess you can just chalk it up to freedom of the press…written by Chicken Little (but I prefer the facts, so thanks Jason, for setting the record straight)!
Jason misses the point. We are in a completely different set of circumstances. We have the highest percentage of foreclosures. These plus existing home, and new home markets are all in competition. Jason also misses the fact that there were subprime home loans that fueled the previous cycle of home buying. People are worried that the new home they are buying will lose their value do to the foreclosures. Remember that existing home sales use comps. to decide home prices/ appraisals. Jason also forgets how economics factor into the home buying process. Unemployment or threatened unemployment have people worried. Also lets not forget to factor into the equation people who no longer qualify for loans. People who are complaining about the doom and gloom need to realize that yes there is an economic catastrophe going on. It is reality. Please don't trivialize this. People are looking for security in their home buying purchase – it is no longer what they want but what they need. Also, Jason mentions that housing is a basic need. That is correct, but that doesn't mean they are going to purchase a home. They can always rent.
I'm trying to understand how Jason could possibly be missing the point. I read the article, I read lots of articles on real estate, the housing market, the economy, politics, because it's important to my job. He's not promising any overnight turn-around to the current situation, he's just saying that it will turn-around and that the media needs to quit sending this doomsday message. They got it wrong in the past (see the dates on those old magazine articles?), and they've got it wrong now.
The argument about always being able to rent is interesting though, somebody had to purchase that property so it could be rented. Rentals are an economic indicator which also works in these cycles, see where I'm going with this? Cycles, circles, cyclical-no beginning and no end-always in perpetual motion like the tides. There is a season for everything, then it must wither, die, and fall from the vine. This allows for new demand and new growth. I don't know about you, but I don't want a house that's over a few years old, the insulation isn't as good, the appliances start to break down, the carpets have other peoples “stuff” on them…yuck!!! Even I want to buy a newer house than what I'm in, and I imagine I will, within the next year or so. There is not a fearful bone in my body about the issue…real estate is always a good investment.
Just my thoughts on the subject!
By the way, Jason, I got to see you speak in San Francisco in June at the PCBC, I would absolutely love to get you to speak to my salespeople, I think the message they need to hear is this one! Please feel free to contact me ASAP to discuss your fee and so I can order books for my crew. Thanks!
Thanks for the comment Chris, I loved speaking at the PCBC, what a great group! My booking agent, Jennifer can help you with both the books and my speaking engagements. Her number is 817-372-8264, I will tell her to expect your call.
I found this blog on Amazon, so I did not realize this was specifically for builders. I was under the impression that you may have submitted this opinion to the N.Y. Times as well as to this blog. You should consider submitting to the N.Y. Times. You could use the information from that for selling purposes. You would get the pulse of the people/ market. I would also suggest that your articles be submitted to outside the industry group. This would give you a good audit on your remarks and theories. If you are training sales mgmt, and sales staff, you need to have an accurate picture of the market. You wouldn't want your accountant to audit his own books would you?