Donna J Baade, P C

Media Track Record vs. "the FACTS"



The Media’s "Take" on the Real Estate Industry VS "the FACTS".

The Media’s "Take" on the real estate industry is nothing new. For decades they have practiced doom and gloom tactics and in some cases have actually caused real estate prices to decline short term. The GOOD news is, each and every short term decline has been temporary and has been followed by long term price appreciation.

Today, we are in the middle of a Window of Opportunity to purchase attractive real estate at the best prices we may see in our lifetime and to receive “incentives” on our purchases on top of it! The incentives by builders and developers, attractive mortgage rates are favorable indicators for Home Buyers. Once the market begins showing signs of a rebound, these incentives may dry up.

Sit back and enjoy some of the projections from yesteryear and allow them to mirror the wide variety of “fear factor” type comments that exist today.

"The prices of houses seem to have reached a plateau, and there is reasonable expectancy that prices will decline."
- Time Magazine, 1947
"Houses cost too much for the mass market. Today's average price is around $8,000 - out of the reach for two-thirds of all buyers."
- Science Digest, 1948
"The goal of owning a home seems to be getting beyond the reach of more and more Americans. The typical new house today costs about $28,000."
- Business Week, 1969
"You might well be suspicious of 'common wisdom' that tells you, 'Don't wait, buy now… continuing inflation will force home prices and rents higher and higher.'"
- NEA Journal, 1970

"The median price of a home today is approaching $50,000… Housing experts predict price rises in the future won't be that great.”
- Nations Business, 1977

"The era of easy profits in real estate may be drawing to a close."
- Money Magazine, 1981
"The golden-age of risk-free run-ups in home prices is gone."
- Money Magazine, 1985
"Most economists agree…. [a home] will become little more than a roof and a tax deduction, certainly not the lucrative investment it was through much of the 1980's."
- Money Magazine, 1986
"Financial planners agree that houses will continue to be a poor investment."
- Kiplinger's Personal Financial Magazine, 1993
"A home is where the bad investment is."
- San Francisco Examiner, 1996
"Home prices experience historic drop."
- CNN Money.com, 2007

Each and every negative prediction relative to the Real Estate Industry in our great American economy was short-lived. At the time such predictions made it appear Real Estate would never go up again in value - similar to the way it may feel for many now. The GOOD news is found in the few lines below. This time is NO different than times past!

FACT: National Real Estate as noted in a recent (2/08) National Association of Realtors online publication noted values have appreciated
• 88% since 1996
• 340% since 1977
• 685% since 1969
• 2650% since 1948


If you are in the market to Sell or Purchase, consult your PROFESSIONAL Realtor - Wed Apr 9 2008, 12:07