The Media’s Role in the Housing Downturn

This post on the L.A. Times’ real estate blog, L.A. Land, referenced a commentary by a real-estate agent named Bernice Ross, who asserts that the current housing-market conditions are being exacerbated by gloom-and-doom stories in the media.

Bernice Ross writes at Inman.com today, “I am sick and tired of the negative media constantly ranting about how horrible everything is in our business. It’s time for our industry to fight back against these psychic vampires who seek to suck every bit of hope and optimism out of us just to build their circulation.”

The post has so far generated 84 comments from readers.  Check out the back-and-forth; it’s pretty interesting stuff.

Somewhere between the extreme views is the truth.  The negative press hasn’t been good for the market, but journalists don’t promote the market; they report news.  And when sales and prices plummet and people start losing their homes, that’s news. 

Are there valid reasons to buy a home?  Of course.  Those who plan to stay put for a few years and can ride out this downturn are good candidates.  Foreclosures, short sales, and other desperation situations, such as divorce, can create opportunities.  And if you guess right on which run-down neighborhood is about to turn into the trendiest place in town, you might do well. 

Agents have seen their business grind to a standstill.  It’s not surprising that some are looking for someone to blame.  But when people everywhere are facing financial ruin because of a housing purchase, or contemplating mortgaging themselves to the hilt to buy a house they really can’t afford, it clearly is a time for caution.  The numbers don’t lie.