I watch the Today Show in the morning. I get up, work out, have my breakfast and watch the show as I move through my morning. They always seem to have a lot of fun on that show. They seem to genuinely enjoy working with each other. Often, I find their guests informative and entertaining.
However, Jim Cramer was on this morning. You know the guy - short, balding and very, very loud. He has his own show about the stock market - I think it’s called Mad Money (because he screams so much?). At any rate, he’s a regular contributor on the Today show. The past couple of times he’s been on, he’s had some pretty harsh things to say about the Real Estate market. Now, I don’t know much about the stock market, but I do know something about Real Estate and Jim, you really miss the point about it.
Real Estate is local. If you live in San Antonio or New Braunfels or Seguin, you don’t care what’s going on in the Real Estate market in New York - or DC - or anywhere else for that matter, because what you really care about is “what is MY house worth?”, “can I get a loan?”, or “how much will I have to pay for a home?”. Lets face it, yes, there are some really bad market areas out there. Many people got into loans they can’t afford and are losing their homes. And yes, the argument can be made that lending is more a national market and lenders decisions can affect everyone. But when people make general statements about how bad the housing market is, or when things might recover, their misleading a lot of people who don’t put together that where they are may or may not be in the type of market you’re talking about. And, when they make general statements about Real Estate, they can cause concern (or lack thereof) with people who don’t need to worry.
Home values are local. Housing markets are local. I live in the New Braunfels area. Our market isn’t bad at all. Yes, time on market is a bit longer and inventories are up, but overall the New Braunfels market is pretty good to very good. Homes are selling - when priced right (sellers - are you listening?) And, there are buyers out there (a lot more lately). Generally speaking, our area has been insulated from the major downturn many other areas are experiencing. In fact, properties are still appreciating in our area.
So, when I watch the Today Show and Jim Cramer comes on to rant about the terrible housing market, I add a grain of salt - and keep in mind that Real Estate is local - and Jim is talking about a national market that simply doesn’t exist. My heart goes out to those who are suffering in their local real estate market, and I remind my clients and friends to remember that our local market remains strong.