There's a news aggregation website I visit from time to time that collects links to different sorts of articles and posts them all in one place.
Recently, this site -- in two different places but close to one another -- posted links to articles with the following headlines:
"No 'frenzy' to beat homebuyer tax credit deadline"
"Selling frenzy as homebuyer tax credit nears end"
Those are conflicting headlines to say the least! So what's a reader supposed to think?
One headline, the first above, links to an article on CNNMoney.com. The article says that while the expiration of the tax credits on April 30 led to an uptick in home sales, there hasn't been a last-minute frenzy to get deals signed before the expiration.
As you might guess, the other article -- from the Associated Press -- says there HAS been a frenzy as buyers try to get deals done before the deadline.
The two very different messages illustrate a point that deserves our attention: The media during this time of economic recovery can confuse the average person. This is a glaring example of the mixed messages the public has been sent regarding the economy. When it comes to the housing market, people are unsure what to believe.
The result is a tendency not to believe anything we read. Or at least to simply take bits of information from what we read and form our own opinions.
For example, new home sales were up 27 percent in March from the month before, the biggest increase in 47 years, according to the AP article. Sales of existing homes were up a substantial 7 percent. Is that a "frenzy?" That depends on your own personal interpretation of the word, doesn't it?
And that's the point. If we make our decisions or shape our opinions based others' interpretation of events, we are on dangerous ground. It's part of why there is so much confusion surrounding real estate markets these days. So-and-so says it's a great time to buy; but this So-and-So says real estate is a horrible investment. It's no wonder potential buyers and investors are confused.
On one shoulder, they have a little bird telling them they have the buying opportunity of a lifetime. On the other shoulder, another little bird is telling them to take no action. What happens? The conflicting information causes paralysis.
The best advice is to take what information you can from each little bird and make form your own opinion. Let the media INFORM your decision, but don't let them MAKE it. Otherwise, because of the often-conflicting perspectives, you'll never get anywhere.
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