Media Coverage Harms Real Estate Markets
Welcome to Springfield Illinois where the final sales figures are yet to be released by the Capital Area Association of Realtors (CAAR) for 2006. CAAR placed a request for member brokers to check their files to be certain all sales had been reported for 2006. In its monthly newsletter to member brokers CAAR promised to keep telling the positive story regarding the local market.
The January 2007 issue of Illinois Realtor magazine by the Illinois Association of Realtors (IAR) contains an article from three highly accomplished economists with their view on the economic trends and their outlook for 2007.
What was the common theme from both the local and state real estate leaders and economists? Negative reporting by the media. From economist John Tuccillo writing for Illinois Realtor Magazine: "We have a very strong negative psychology in the market right now. The media will have you believe that the boom is over, the bust is here and the long cold winter is bearing down and the people who bought houses the last couple years are fools. If you pick a marketplace with a steady economy--for example Springfield with state government and a university--and even an area like that with no dip or change or whatever, people still feel the negative psychology.
Amen Mr. Tuccillo. In the year 2005 Springfield Realtors reported 4182 closed home sales, the highest ever, and a new record for an unprecedented 8th straight year. Through January 14th 2007 brokers had reported 4150 closed home sales for 2006. The second highest number of sales in history for a year, and a mere 32 sales from the all time record. You would think everyone would be happy, wouldn't you?
No, there is concern that the continuation of negative press will furthur damage the local and, state real estate markets. In my opinion the local newspaper primarily, The State Journal Register (SJR), and other media outlets secondarily, created the negative psychology in the Springfield market with incessant reporting about the downturn in the national market, while the local market continued on record pace. At least until November.
Just as the liberal press across the nation, attacks President Bush on a daily basis for over 6 years, it's no wonder his poll numbers went down. Whether you agree or disagree with the president is not the point here. The point is the influence the media has in forming public opinion. The point is that most Americans form their opinions around a quick read of the paper and 30 second sound bites. The SJR created a negative view of the real estate market with bold and enlarged headlines, while pertinent content was buried in the fine print, if printed at all. TV and radio only reinforced the negative psychology with the sound bites.
The countless times when fellow agents and consumers asked me; "How bad is the market?" during a time when the market wasn't bad, is proof of the folly of the local paper. More proof came, when for no apparent reason, with no major swing in interest rates, no major swing in employment, sales of homes unexpectedly slowed to a crawl in November. The 35% drop in closed sales in December 2006 from December of 2005 was not caused by the ice storm/blizzard the first week of the month.
Welcome to Springfield Illinois where the real estate market is one of the most stable, and affordable in the U.S.A., where the median sale price of a home is $99,500, the average sale price is $121,000, where unemployment is at 3.5%, and where the local liberal newspaper would have you believe the market had gone to hell in a hand basket. After all local Realtors reported as of Jan. 14th, 2007, closed home sales for 2006 were DOWN .007% from 2005. OH MY GOD, it's the end of the world!
I wonder why so many newspapers are losing money, laying off employees, and are up for sale? Like the SJR? Just curious. I wonder why the three economists writing for Illinois Realtor Magazine when asked what the Positive and Negative factors for the Illinois housing market are, concluded the number one negative is: Negative psychology fueled by the media--"The sky is falling!"
The changing of the SJR into a liberal paper causes me great regret. Over my 20 year professional relationship with the paper I have met some of the most wonderful, caring, hard working individuals one could meet. Knowing so many fine people still employed at the paper, there is no question, in my opinion, the liberal position of the paper comes from the top down. Just as with many papers across the nation, there is scant little objective reporting. When the AP and N.Y. Times wire service are your primary sources for articles, any objective person would realize the agenda. These reporters slant their reporting according to their personal political views. One can safely bet that an objective, or conservative reporter would be classified as an endangered species at AP and the Times. It's a shame so many fine people at the SJR are caught in this predicament, while their boardroom, and editors push their liberal agenda. Good luck with the sale of the paper for the sake of the remaining good folks without an agenda, other than earning a living, and returning the SJR to its' formally objective, respected publication.
The January 2007 issue of Illinois Realtor magazine by the Illinois Association of Realtors (IAR) contains an article from three highly accomplished economists with their view on the economic trends and their outlook for 2007.
What was the common theme from both the local and state real estate leaders and economists? Negative reporting by the media. From economist John Tuccillo writing for Illinois Realtor Magazine: "We have a very strong negative psychology in the market right now. The media will have you believe that the boom is over, the bust is here and the long cold winter is bearing down and the people who bought houses the last couple years are fools. If you pick a marketplace with a steady economy--for example Springfield with state government and a university--and even an area like that with no dip or change or whatever, people still feel the negative psychology.
Amen Mr. Tuccillo. In the year 2005 Springfield Realtors reported 4182 closed home sales, the highest ever, and a new record for an unprecedented 8th straight year. Through January 14th 2007 brokers had reported 4150 closed home sales for 2006. The second highest number of sales in history for a year, and a mere 32 sales from the all time record. You would think everyone would be happy, wouldn't you?
No, there is concern that the continuation of negative press will furthur damage the local and, state real estate markets. In my opinion the local newspaper primarily, The State Journal Register (SJR), and other media outlets secondarily, created the negative psychology in the Springfield market with incessant reporting about the downturn in the national market, while the local market continued on record pace. At least until November.
Just as the liberal press across the nation, attacks President Bush on a daily basis for over 6 years, it's no wonder his poll numbers went down. Whether you agree or disagree with the president is not the point here. The point is the influence the media has in forming public opinion. The point is that most Americans form their opinions around a quick read of the paper and 30 second sound bites. The SJR created a negative view of the real estate market with bold and enlarged headlines, while pertinent content was buried in the fine print, if printed at all. TV and radio only reinforced the negative psychology with the sound bites.
The countless times when fellow agents and consumers asked me; "How bad is the market?" during a time when the market wasn't bad, is proof of the folly of the local paper. More proof came, when for no apparent reason, with no major swing in interest rates, no major swing in employment, sales of homes unexpectedly slowed to a crawl in November. The 35% drop in closed sales in December 2006 from December of 2005 was not caused by the ice storm/blizzard the first week of the month.
Welcome to Springfield Illinois where the real estate market is one of the most stable, and affordable in the U.S.A., where the median sale price of a home is $99,500, the average sale price is $121,000, where unemployment is at 3.5%, and where the local liberal newspaper would have you believe the market had gone to hell in a hand basket. After all local Realtors reported as of Jan. 14th, 2007, closed home sales for 2006 were DOWN .007% from 2005. OH MY GOD, it's the end of the world!
I wonder why so many newspapers are losing money, laying off employees, and are up for sale? Like the SJR? Just curious. I wonder why the three economists writing for Illinois Realtor Magazine when asked what the Positive and Negative factors for the Illinois housing market are, concluded the number one negative is: Negative psychology fueled by the media--"The sky is falling!"
The changing of the SJR into a liberal paper causes me great regret. Over my 20 year professional relationship with the paper I have met some of the most wonderful, caring, hard working individuals one could meet. Knowing so many fine people still employed at the paper, there is no question, in my opinion, the liberal position of the paper comes from the top down. Just as with many papers across the nation, there is scant little objective reporting. When the AP and N.Y. Times wire service are your primary sources for articles, any objective person would realize the agenda. These reporters slant their reporting according to their personal political views. One can safely bet that an objective, or conservative reporter would be classified as an endangered species at AP and the Times. It's a shame so many fine people at the SJR are caught in this predicament, while their boardroom, and editors push their liberal agenda. Good luck with the sale of the paper for the sake of the remaining good folks without an agenda, other than earning a living, and returning the SJR to its' formally objective, respected publication.
Labels: liberal media
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