Thursday, September 14, 2006

ARE YOU A CHICKEN LITTLE?

In is 9-13-06 update Local weatherman, err... realtor George Lindsay Young is using some good old fashion NAR scare tactics to convice people to buy. If you don't buy you are a chicken little. Forget that prices are overvalued by 50%, forget that median incomes are flat in the last 7 years, forget that the prevelance of liar loans and speculators have left many sellers holding the bag - NO George needs some transactions, otherwise how is he going to eat! Thanks to the reader who sent this in.

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Better Than You Think!


Remember Chicken Little? In the popular children’s fable, a small acorn falling on the feathered fowl could only mean one thing: THE SKY IS FALLING! It’s a cautionary tale about the dangers of overreacting to incorrect conclusions and misguided information. The screaming chicken incites mass hysteria, which leads to further danger for herself and her friends. In many ways, much can be learned from this story and the parallels between it and our current real estate market. If you wanted to find irrational exuberance in the real estate marketplace, you don’t have to look much further than the last three years. Thin inventory, eager buyers, & low interest rates all served as a catalyst to fuel explosive growth in home prices. But rapid price growth is rarely sustainable, and left unchecked, can lead to precipitous drops in prices. Fortunately, that’s not the case for our area, yet the slowdown in our current home market has led some to believe now may not be a good time to buy or sell a home. Cue Chicken Little! But I’m here to tell you, when you get past hyperbole and focus on the facts…“The Market Is Better Than You Think!” Take a close look at statistics and real estate market data for the Bakersfield area and another picture begins to emerge: Managed growth and stability. These are two factors that will likely keep our home market healthy for quite some time. Over the last two months more than 900 homes have sold in the Bakersfield area, and here at the Scott Rivera Real Estate Team, we sold an average of one home every day. It’s a new market reality that has returned us to a normal real estate market. The problem is, normal is a relative term. When things are abnormal for a very long time that can begin to feel normal for many people. Why is the Bakersfield real estate market holding its own when other areas of California may not be fairing as well? While price is big factor, it’s only part of the story. Our economy, diversity, community, and location are also part of the puzzle. Kern County has much to offer when it comes to job growth and quality of life. Also a recent fall in mortgage interest rates will serve to continue to keep the wheels of the real estate machine humming with precision for many months to come. So next time a Chicken Little you may know tries to rule the roost with declarations of doom, just smile. While some will run around with their hands on their head afraid of a piece of the sky falling, you’ll know the home you’re buying or selling will be a piece of something much bigger. It’s the peace of mind that comes from knowing that real estate always has been and always will be part of the American dream.


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7 comments:

jp said...

So who exactly falls for the crap in this letter?

"Hey, I wouldn't want to be a chicken little, so I'm going to buy me a mansion!"

pismobear said...

Plus, give me stated income, stated job, stated credit report, neg/arm i/o or better loan, no payments including taxes and insurance for five years, that will do piggy.

Julio said...

George is smoking from the same crack pipe all the other [R]ealtors are smoking from.

Sunset Beach Guy said...

Crispy:

Save this quote and burn him with it.

Find some of his clients and help em out with evidence.

Anonymous said...

An expert in weather, real estate and now economics.....and all within two years! What's next, George, nuclear physics?

smoggiebakersfield said...

I can say with confidence, that anyone with half a brain is well aware, home prices are falling and will continue over the next several years.

"Curious George" might want to think about a serious career move, say within the next couple months.

Seems like everytime I see that goofball on television, he's gazing up at the sky, like an idiot! Maybe the sky is falling!

George, tell the fam to cancel Christmas!.!.!

Anonymous said...

doesn't everyone want to live in bakersfield? i mean isn't it sort of the marin county of the interior,or something?