Comments on: Does Blogging Make Things Worse?

By: David

David — Fri, 05 Sep 2008 18:38:42 +0000

A lot of stock brokers are quite well off too. Doesn’t mean their clients do as well based on their advice. their motive is to do transactions, not to make you money.

By: Doing Well

Doing Well — Fri, 05 Sep 2008 18:05:02 +0000

DG: You are the funny one. If David needs data to back up Maggie’s assertion that now is a good time to buy a home, then I also need data to back up the assertion that “most” Realtors don’t know anything about investing or fiscal responsibility. “Most” Realtors whom I know and work with are very savvy investors and doing extremeley well. Much of that wealth comes from buying and selling homes, which means the market is very kind indeed to sellers, that we have plenty of buyers, and that agents DO know what they are doing

By: dg

dg — Fri, 05 Sep 2008 06:46:21 +0000

This is funny. Actually, it’s kinda sad. Many realtors are bitter in this environment and just aren’t able to handle the reporting of solid advice and information, especially if it means lower transactional volume for these buyers’ agents.

Most realtors just have no understanding of simple economics. Unfortunately, most only understand the CAR or SFAR sales contract (even sometimes that is a stretch!) and how to calculate commission.

Blogging is not mainstream enough to truly influence a large amount of people IMO, but when it reaches the front pages of the Chron, WSJ, NYT, etc. it can do damage. But usually once it hits these places’ front pages it is already well underway and not ahead of the curve.

By: David

David — Thu, 04 Sep 2008 22:00:50 +0000

Sure SF property appreciates. Well, except for 1989-1997. Whoops. Hope you didn’t buy in 1989 and had to sell in 1992. Chances are you lost (a lot) of money. Sure, it might appreciate over 30 years. Too bad the median time the average American spends in a house is about 7 years.

Panic causing the Great Depression?? Give me a break. It might have caused a few bank failures, but it wasn’t the panic that caused the Depression, just like reporting on falling prices doesn’t cause falling prices.

As for buying a house being a “great investment” that implies that it is a superior vehicle to producing returns on your cash invested. Oh really? I’d like to see her numbers on why buying a house now in, say, SF, will produce a superior return on investment to another investment class. Heck, I’d like to see why buying now in SF is better than renting? What assumptions is she invoking? In that quote, she’s just spewing hot air. I’m calling BS.
That’s all.

By: Janssen

Janssen — Thu, 04 Sep 2008 21:09:51 +0000

Um, proof that SF property appreciates? Try any data anywhere

By: David

David — Thu, 04 Sep 2008 19:51:34 +0000

Instead of merely claiming that R.E. now is a great “investment,” why doesn’t our friendly R.E. agent produce some numbers as to why buying a house now will net you greater returns than alternative investments (stocks, muni bonds, T-Bills, foreign stocks, hedge funds/private equity for those rich enough to buy in)? I’ve posted up numbers here right and left showing that, sure, for some areas (San Leandro, certain other ‘hoods), it probably makes sense to buy and not rent (but it’s not a great “investment”–it just beats the alternative of renting). In other areas (SF almost in its entirety), it does not make sense to buy. Where’s the support for her claim? In all the reports on long-term housing market ratios, valuations etc, I’ve never once seen “emotional distress” as a factor in R.E. valuations. I’d love to see some real evidence for her claim that it 1) has an effect or 2) R.E. is a “good investment” in, say, SF.

By: garrett

garrett — Thu, 04 Sep 2008 17:27:49 +0000

janssen—

i completely agree, 100%. that said, in today’s world, people should take it upon themselves to research with more than one source. should there be patterns, then, perhaps, there is a major problem. i hear what you’re saying though and the media really does have an affect on moods and behavior.

By: Janssen

Janssen — Thu, 04 Sep 2008 17:07:42 +0000

You all have to realize that constant negativity does indeed affect people’s moods. They get scared and won’t buy, or the seller now can’t achieve the price he wants, because of the perception of lesser value that is after all just a perception. If you need an example of the power of panic, look no further than the Great Depression

By: garrett

garrett — Thu, 04 Sep 2008 16:14:31 +0000

yeah, i think it’s pretty silly to say that blogs or realtor speak is driving the market down. the market is powerful and the forces that control it are heavily influenced by high-level factors including financing, demand, confidence, scarcity, etc. to even insinuate that blogs are perpetuating the downturn is a joke to me. as far as i’m concerned, if the whole story is told (including the reduced prices), folks may actually be able to find a deal! i’m an agent, i wouldn’t mind prices coming down in sF so that my clients and friends could actually buy a place! as for my sellers, they seem to be doing fine and those that have sold in the last year or so may not have seen their highest return (as if they would if they sold at the “top”), but they are still seeing one.

By: susan.brady

susan.brady — Thu, 04 Sep 2008 16:06:16 +0000

This is a really great post Anna. Kudos to you. Very thoughtful.