Whether you live in Houston or not, this rather disturbing story has surfaced by way of the Houston City Council, indicating the possibility of local officials raising property taxes, increasing the fees for garbage pickup, and a host of other costly plans:
http://blog.chron.com/houstonpolitics/2012/04/city-could-study-tax-and-fee-increases/
Of course, we can all understand that city budgets are suffering just about everywhere. But to further penalize home owners would prove to be an absurd move. It was only a few weeks ago when I address some of the problems with the housing market in Houston, and how foreclosure sales are so prominent.
Perhaps instead of pumping out the negative statistics about the current market, the local realty associations should be lobbying and protesting these actions on behalf of the home owners they represent.
If these increases do go through in Houston, it will make it even more difficult for sellers than it already is. And, of course, as politicians go, if it passes in Houston then other big cities will implement it, and the real estate market will be further set back.
Showing posts with label association of realtors. Show all posts
Showing posts with label association of realtors. Show all posts
Tuesday, April 3, 2012
Tuesday, February 21, 2012
Does Houston Have A Problem?
It's the next round of home sales and pricing releases around the country. The newest chance to see if the various realty associations have cut down on adding to the negative publicity about the current real estate market.
This one from the Houston Association of Realtors is attempting to show a positive spin:
http://www.har.com/mls/dispPressRelease_print.cfm?month=02&year=12
However, they have a few too many statistics included. Serious real estate market observers will see right through this, and that's not good.
This story builds up the so-called rise in home sales and relative steadyness of home prices for January and the months prior.
But it also shoots itself right back down. The real reason for this is right there in the story. As in the part about the increase in foreclosures, and how they now account for a much bigger percentage of home sales.
Why is the home sales market "up"? Because more and more former home owners have been foreclosed upon. Take away those statistics, and, well, it sheds a different light on the current marketplace.
This is where Houston has a problem. As well as other cities. The current market isn't really "up". If fewer people were losing their homes due to financial reasons beyond their control, it would not appear as if home sales are up.
It is really foreign investors, flippers, and a few speculators who are buying the homes out there, and doing so because in many cases they get a below market deal by acquiring a foreclosure.
That even more people are being foreclosed on in the Houston area, while many other parts of the country are "reporting" that the number of foreclosures has dipped, certainly should not be treated as the "positive" news the HAR is doing in this story.
This one from the Houston Association of Realtors is attempting to show a positive spin:
http://www.har.com/mls/dispPressRelease_print.cfm?month=02&year=12
However, they have a few too many statistics included. Serious real estate market observers will see right through this, and that's not good.
This story builds up the so-called rise in home sales and relative steadyness of home prices for January and the months prior.
But it also shoots itself right back down. The real reason for this is right there in the story. As in the part about the increase in foreclosures, and how they now account for a much bigger percentage of home sales.
Why is the home sales market "up"? Because more and more former home owners have been foreclosed upon. Take away those statistics, and, well, it sheds a different light on the current marketplace.
This is where Houston has a problem. As well as other cities. The current market isn't really "up". If fewer people were losing their homes due to financial reasons beyond their control, it would not appear as if home sales are up.
It is really foreign investors, flippers, and a few speculators who are buying the homes out there, and doing so because in many cases they get a below market deal by acquiring a foreclosure.
That even more people are being foreclosed on in the Houston area, while many other parts of the country are "reporting" that the number of foreclosures has dipped, certainly should not be treated as the "positive" news the HAR is doing in this story.
Monday, January 30, 2012
Broker Blames Advertising For Bad Market????
As long-time readers of this blog are aware, I have spent hours sharing my thoughts of a variety of specific real estate advertisements from web sites and newspapers, and demonstrating how much room there is for improvement in most cases.
This, along with continuous questioning of why realty associations continue to publicize negative statistics about home sales instead of only taking a positive slant.
Imagine my anger and frustration when I saw this story from this afternoon about a San Diego realty firm President complaining about how regional and national web sites which use information his office, and other realty offices, provide in order to enhance their (site's) home search capabilities.
http://www.mediapost.com/publications/article/166773/arg-realty-claims-ip-theft-pulls-real-estate-list.html?edition=42796
The subject actually has the nerve to complain that this practice is partially to blame for the state of the current real estate market.
Immediately upon reading this nonsense, I offered up the following response on MediaPost, which originated this article:
+ + + + + + + + + + +
There are two sides to this story, which seems to only have covered one side. The story fails to point out how often (or seldom) some of the "other" sites update their listings and information. For example, my understanding is that Yahoo updates every week.
In addition, I have seen numerous instances where the content of a listing ad on a "national" site has differences compared to what is posted on a realty office web page or site. This story does not reflect that point of view. Furthermore, I can't believe that Mr. Abbott (who I do not know and to the best of my knowledge has not previously been a client) has the nerve to be publicly quoted that these other sites have "slowed the recovery of the housing market". He can't really think that if a potential buyer who has to enter specific criteria to search for homes in locations where his office has listings will give up if the one listing they look at is no longer available.
Having personally created more than 12,000 individual property ads during my 23 years of real estate related marketing and advertising duties, I can easily show him examples of how many realty firms do not even inspect ads they have directly placed within a variety of media and distribution sources.
All this while the very realty associations his office and its agents belong to continue to publish negative statistics about the current local housing markets. He should be asking his association people how reporting that (for example) "Local home sales were down 4.8% last month compared with a year ago" is a help to local sales. But, sure, Mr. Abbott can go ahead and blame other web sites which, so far, have been promoting information his people have created without his office or agents having to pay for it.
+ + + + + + + + + +
I have yet to check Mr. Abbott's office web site to review the listing advertisements on there, but it probably will be a fun task at some point in the near future. Considering the thousands of realty agents that love the fact that Yahoo, Trulia, and other large real estate related web sites bring themselves and their listings "free" additional publicity, there must be a reason why Abbott's advertisements are not producing any results for him and his people.
After all, he and I seem to agree that it takes better advertising and marketing of properties to improve the real estate market.
This, along with continuous questioning of why realty associations continue to publicize negative statistics about home sales instead of only taking a positive slant.
Imagine my anger and frustration when I saw this story from this afternoon about a San Diego realty firm President complaining about how regional and national web sites which use information his office, and other realty offices, provide in order to enhance their (site's) home search capabilities.
http://www.mediapost.com/publications/article/166773/arg-realty-claims-ip-theft-pulls-real-estate-list.html?edition=42796
The subject actually has the nerve to complain that this practice is partially to blame for the state of the current real estate market.
Immediately upon reading this nonsense, I offered up the following response on MediaPost, which originated this article:
+ + + + + + + + + + +
There are two sides to this story, which seems to only have covered one side. The story fails to point out how often (or seldom) some of the "other" sites update their listings and information. For example, my understanding is that Yahoo updates every week.
In addition, I have seen numerous instances where the content of a listing ad on a "national" site has differences compared to what is posted on a realty office web page or site. This story does not reflect that point of view. Furthermore, I can't believe that Mr. Abbott (who I do not know and to the best of my knowledge has not previously been a client) has the nerve to be publicly quoted that these other sites have "slowed the recovery of the housing market". He can't really think that if a potential buyer who has to enter specific criteria to search for homes in locations where his office has listings will give up if the one listing they look at is no longer available.
Having personally created more than 12,000 individual property ads during my 23 years of real estate related marketing and advertising duties, I can easily show him examples of how many realty firms do not even inspect ads they have directly placed within a variety of media and distribution sources.
All this while the very realty associations his office and its agents belong to continue to publish negative statistics about the current local housing markets. He should be asking his association people how reporting that (for example) "Local home sales were down 4.8% last month compared with a year ago" is a help to local sales. But, sure, Mr. Abbott can go ahead and blame other web sites which, so far, have been promoting information his people have created without his office or agents having to pay for it.
+ + + + + + + + + +
I have yet to check Mr. Abbott's office web site to review the listing advertisements on there, but it probably will be a fun task at some point in the near future. Considering the thousands of realty agents that love the fact that Yahoo, Trulia, and other large real estate related web sites bring themselves and their listings "free" additional publicity, there must be a reason why Abbott's advertisements are not producing any results for him and his people.
After all, he and I seem to agree that it takes better advertising and marketing of properties to improve the real estate market.
Thursday, November 10, 2011
Nashville Spins
Here are still more examples of how much advertising and marketing contributes more to the decline of the real estate market than people realize.
Sorry to sound like a broken record, but the realty associations continue to put out statistics which do not have a positive impact. As sports fans can tell you, people can use certain statistics to make arguments for either side.
Nashville TN provides us with still another example. The Greater Nashville Assn. of Realtors released their latest monthly market statistics earlier this week. Keep in mind that the realty agents in the area are the ones who combine to financially support the Association. Yet, these statistics show a drop in home sales in the area for the 2nd month in a row.
The question should be asked. Why did the Association issue this information? The member agents don't benefit by current and potential sellers seeing that they have even less of a chance. I don't buy the argument that it encourages potential buyers to take advantage of all of the bargains out there. Instead, potential buyers from out of the area could think that the region has become less desireable.
The Nashville Tennesseean, the major newspaper there, added to the negative spin of this information:
http://www.tennessean.com/article/20111109/BUSINESS02/311090133/2047/BUSINESS
Yet, the local business publication took the SAME information, and put a slightly more positive spin on it:
http://nashvillepost.com/news/2011/11/9/october_marks_four_months_of_home_sales_growth
I'm sure that the Association intended their statistics to always have a positive spin such as the Post gave it. Come to think of it, the Post's article isn't totally positive either. It does show how two separate entities approached the same statistical information. Whether it should have been available to them or not.
Yet, these two articles are not advertising or marketing pieces. That's my other discovery this week.
It so happens that I use a mailbox store to receive a lot of my mail and also to receive packages during the day since I prefer not to have mail or packages left outside of my home. Of course, the junk mail also goes there, which is a good thing.
Earlier this week, I received a mailer from a local mortgage broker. Since I'm in contact with 200 to 300 mortgage offices and banks most every week, I was curious to see their angle. To my amazement, this lender's "letter" told me that they could get me a better deal for my home located at (address), even quoting an estimated amount of my mortgage.
What this mortgage broker didn't know is that the address in that mailer was for the mailbox place. There is no house at that address!
Of course, my industry colleagues are getting a good laugh about this as I spread the word about this lender's carelessness. However, if I were not an advertising and marketing professional in the business, I might well have considered that mailer as one more shady operator and a reason not to deal with mortgage brokers. Especially if I had recently read about how my local realty association promotes that fewer and fewer homes are selling in my area.
These realty agents and lenders seem to have nothing to talk about except for how awful the market is. Yet, next month is supposed to see the start of the Home Affordable Refinance Program. It could be huge break for the millions of home owners who are thousands of dollars underwater on their current mortgage, yet have made the payments and stayed faithful.
I know because it could impact me personally. I'm already on 2 "waiting lists" to be contacted the minute the plan becomes available to me. I might add that neither of those lenders are my previous mortgage broker, since he didn't contact me about this yet. From my conversations with banks and brokers each week, I know that some are planning to administer this program, while some aren't certain and some say they will not.
This HARP plan could save me and thousands of home owners thousands of dollars, and could very well keep numerous home owners from heading toward foreclosure over the years. This could be the most positive development in real estate in three years.
Yet, I'm one of the few writing about it, while realty associations continue to pump out the "nobody is buying" statistics and lenders continue to think that every address is a home with a mortgage.
Here's hoping that advertising, marketing, and news releases will appeal to 100% of the people next time around.
Sorry to sound like a broken record, but the realty associations continue to put out statistics which do not have a positive impact. As sports fans can tell you, people can use certain statistics to make arguments for either side.
Nashville TN provides us with still another example. The Greater Nashville Assn. of Realtors released their latest monthly market statistics earlier this week. Keep in mind that the realty agents in the area are the ones who combine to financially support the Association. Yet, these statistics show a drop in home sales in the area for the 2nd month in a row.
The question should be asked. Why did the Association issue this information? The member agents don't benefit by current and potential sellers seeing that they have even less of a chance. I don't buy the argument that it encourages potential buyers to take advantage of all of the bargains out there. Instead, potential buyers from out of the area could think that the region has become less desireable.
The Nashville Tennesseean, the major newspaper there, added to the negative spin of this information:
http://www.tennessean.com/article/20111109/BUSINESS02/311090133/2047/BUSINESS
Yet, the local business publication took the SAME information, and put a slightly more positive spin on it:
http://nashvillepost.com/news/2011/11/9/october_marks_four_months_of_home_sales_growth
I'm sure that the Association intended their statistics to always have a positive spin such as the Post gave it. Come to think of it, the Post's article isn't totally positive either. It does show how two separate entities approached the same statistical information. Whether it should have been available to them or not.
Yet, these two articles are not advertising or marketing pieces. That's my other discovery this week.
It so happens that I use a mailbox store to receive a lot of my mail and also to receive packages during the day since I prefer not to have mail or packages left outside of my home. Of course, the junk mail also goes there, which is a good thing.
Earlier this week, I received a mailer from a local mortgage broker. Since I'm in contact with 200 to 300 mortgage offices and banks most every week, I was curious to see their angle. To my amazement, this lender's "letter" told me that they could get me a better deal for my home located at (address), even quoting an estimated amount of my mortgage.
What this mortgage broker didn't know is that the address in that mailer was for the mailbox place. There is no house at that address!
Of course, my industry colleagues are getting a good laugh about this as I spread the word about this lender's carelessness. However, if I were not an advertising and marketing professional in the business, I might well have considered that mailer as one more shady operator and a reason not to deal with mortgage brokers. Especially if I had recently read about how my local realty association promotes that fewer and fewer homes are selling in my area.
These realty agents and lenders seem to have nothing to talk about except for how awful the market is. Yet, next month is supposed to see the start of the Home Affordable Refinance Program. It could be huge break for the millions of home owners who are thousands of dollars underwater on their current mortgage, yet have made the payments and stayed faithful.
I know because it could impact me personally. I'm already on 2 "waiting lists" to be contacted the minute the plan becomes available to me. I might add that neither of those lenders are my previous mortgage broker, since he didn't contact me about this yet. From my conversations with banks and brokers each week, I know that some are planning to administer this program, while some aren't certain and some say they will not.
This HARP plan could save me and thousands of home owners thousands of dollars, and could very well keep numerous home owners from heading toward foreclosure over the years. This could be the most positive development in real estate in three years.
Yet, I'm one of the few writing about it, while realty associations continue to pump out the "nobody is buying" statistics and lenders continue to think that every address is a home with a mortgage.
Here's hoping that advertising, marketing, and news releases will appeal to 100% of the people next time around.
Friday, March 18, 2011
The Industry Still In Denial
It was just another day of reviewing real estate news looking for something other than the usual real estate professionals releasing negative statistics. Until I came upon a story from Springfield IL.
Of course, the story contains several negative statistics released by the local Association of Realtors. What makes this story so incredible is how the Association President blames "the weather and high gas and food prices" for the drop in home sales.
See for yourself:
http://www.sj-r.com/top-stories/x1777816246/Weather-economy-cited-in-24-3-percent-home-sales-drop
It's time to blame the Assn. President for not giving this story a much needed positive twist. If I had read that during Feburary 165 home sales were completed in the Springfield IL area, I'd could have been impressed. That month included a severe blizzard, a substantial increase in gas prices, etc. Yet, during that time, an average of more than 3 homes were sold every day. Someone could have figured maybe there are reasons to buy in that area.
It can't be that so many agents are in such denial. At least, I hope not. This is perhaps the worst case of the "You wouldn't want to buy a home here, would you?" syndrome I have seen coming from industry members.
We should all be working on solving the current problem. It is getting more serious every day. Many of those who are not afraid to purchase and can afford to can't get a mortgage. Even more can't get rid of their current property to make their next purchase.
Yet, this guy wants us to believe that if there was not a snowstorm, if gas was still at $2.40 a gallon, and the food crop was better this winter, more homes would have sold.
Not exactly a solution.
Here is it a month later. The snow is all gone. I'm still putting gas in my car, and still eating my regular meals every day. But my house still hasn't sold after more than a year on the market.
I suppose that's because of the St. Patrick's Day parades? Guess we'll find out next month.
Of course, the story contains several negative statistics released by the local Association of Realtors. What makes this story so incredible is how the Association President blames "the weather and high gas and food prices" for the drop in home sales.
See for yourself:
http://www.sj-r.com/top-stories/x1777816246/Weather-economy-cited-in-24-3-percent-home-sales-drop
It's time to blame the Assn. President for not giving this story a much needed positive twist. If I had read that during Feburary 165 home sales were completed in the Springfield IL area, I'd could have been impressed. That month included a severe blizzard, a substantial increase in gas prices, etc. Yet, during that time, an average of more than 3 homes were sold every day. Someone could have figured maybe there are reasons to buy in that area.
It can't be that so many agents are in such denial. At least, I hope not. This is perhaps the worst case of the "You wouldn't want to buy a home here, would you?" syndrome I have seen coming from industry members.
We should all be working on solving the current problem. It is getting more serious every day. Many of those who are not afraid to purchase and can afford to can't get a mortgage. Even more can't get rid of their current property to make their next purchase.
Yet, this guy wants us to believe that if there was not a snowstorm, if gas was still at $2.40 a gallon, and the food crop was better this winter, more homes would have sold.
Not exactly a solution.
Here is it a month later. The snow is all gone. I'm still putting gas in my car, and still eating my regular meals every day. But my house still hasn't sold after more than a year on the market.
I suppose that's because of the St. Patrick's Day parades? Guess we'll find out next month.
Thursday, March 10, 2011
Those Negative Home Sale Statistics
You would think that Realtors would know not to make things any more embarassing when it comes to their take on the current state of home sales.
Now comes word from Minneapolis that home sales in the Minneapolis area declined more than 30% when compared with one year ago for the last week in February. This "report" points out how that week's drop was more than double the 12% decline of the previous week. Put that "report" together and it spells an alarming and disturbing trend for anyone trying to or thinking of trying to sell a house or condo in that area.
This "report" tries to make the excuse that sales were higher a year ago because of the real estate tax credit which was available to first-time buyers and sellers under certain conditions at the time. That tax credit is no longer available. Therefore, by making this excuse, this "report" is really pointing out how the market conditions are really less favorable compared with one year ago since that tax credit is no longer available to anyone. Such a "reminder" to the concerned consumers reading that certainly doesn't help the situation either.
Yet, I am sorry to report that there is one more disturbing element to this "report", as if the negative news to current and potential sellers isn't already enough.
It seems that this "report" that contains all this discouraging information didn't even need to be released to the media to spread the word about how miserable the market is.
Let me put it another way. It SHOULD NOT have ever been released. It could have been prevented.
The source of this information is the Minneapolis Area Association of Realtors. You read that right. The dues money that agents and realty offices throughout the Twin Cities area is going, in part, to have information such as this released to the public.
Why there is this need for realty associations around the country to continue to pump out even one negative statistic is beyond me. I would understand if this information was coming from outside public companies, investment bankers, commercial property brokers, or banks which do not handle mortgages by way of news releases. Entities such as those are looking for large investor monies and would take the chance to bash something competing for investment dollars.
"People aren't buying real estate to make money, but if you invest with us, you could earn x% within 10 years", could be used to entice wealthy consumers to invest in long term bonds or certificates which assure a payoff at some point.
Instead, the industry continues to shoot itself in the foot. Worse yet, they are helping to take down thousands of current and potential home sellers in the process.
Having said that, I have other news to report specific to the Minneapolis area. During the last week of February 2011, just 2 weeks ago, 608 initial purchase agreements for houses or condos were signed. That means that, while some people are questioning the real estate market at the moment, about 600 properties were sold within one week's time in and around that major city! And that's without a tax credit or any other significant incentive.
In fact, I was able to verify that statistic with the Minneapolis Association of Realtors. It again shows that if you dig hard enough, you can find some good news for consumers.
Now comes word from Minneapolis that home sales in the Minneapolis area declined more than 30% when compared with one year ago for the last week in February. This "report" points out how that week's drop was more than double the 12% decline of the previous week. Put that "report" together and it spells an alarming and disturbing trend for anyone trying to or thinking of trying to sell a house or condo in that area.
This "report" tries to make the excuse that sales were higher a year ago because of the real estate tax credit which was available to first-time buyers and sellers under certain conditions at the time. That tax credit is no longer available. Therefore, by making this excuse, this "report" is really pointing out how the market conditions are really less favorable compared with one year ago since that tax credit is no longer available to anyone. Such a "reminder" to the concerned consumers reading that certainly doesn't help the situation either.
Yet, I am sorry to report that there is one more disturbing element to this "report", as if the negative news to current and potential sellers isn't already enough.
It seems that this "report" that contains all this discouraging information didn't even need to be released to the media to spread the word about how miserable the market is.
Let me put it another way. It SHOULD NOT have ever been released. It could have been prevented.
The source of this information is the Minneapolis Area Association of Realtors. You read that right. The dues money that agents and realty offices throughout the Twin Cities area is going, in part, to have information such as this released to the public.
Why there is this need for realty associations around the country to continue to pump out even one negative statistic is beyond me. I would understand if this information was coming from outside public companies, investment bankers, commercial property brokers, or banks which do not handle mortgages by way of news releases. Entities such as those are looking for large investor monies and would take the chance to bash something competing for investment dollars.
"People aren't buying real estate to make money, but if you invest with us, you could earn x% within 10 years", could be used to entice wealthy consumers to invest in long term bonds or certificates which assure a payoff at some point.
Instead, the industry continues to shoot itself in the foot. Worse yet, they are helping to take down thousands of current and potential home sellers in the process.
Having said that, I have other news to report specific to the Minneapolis area. During the last week of February 2011, just 2 weeks ago, 608 initial purchase agreements for houses or condos were signed. That means that, while some people are questioning the real estate market at the moment, about 600 properties were sold within one week's time in and around that major city! And that's without a tax credit or any other significant incentive.
In fact, I was able to verify that statistic with the Minneapolis Association of Realtors. It again shows that if you dig hard enough, you can find some good news for consumers.
Thursday, December 2, 2010
Let's keep the home sales market looking bad......
Another example of how it depends on where you read to track the real estate market.
At least one realty office understands the need to only report positive statistics:
http://www.mainlinemedianews.com/articles/2010/11/29/main_line_suburban_life/news/doc4cd1a06d79004599608009.txt
Yet, still another realty association keeps the NEGATIVE market statistics coming. Amazingly, it's the New York (state) Association of Realtors, which somehow thinks that reporting home sales dropping for the 4th consecutive month is necessary:
http://poststar.com/news/local/3d5c09d6-fbf4-11df-b44e-001cc4c002e0.html
Oh my. If they are going to remind us that fewer people are buying homes, how do they expect the market to get any better?
At least one realty office understands the need to only report positive statistics:
http://www.mainlinemedianews.com/articles/2010/11/29/main_line_suburban_life/news/doc4cd1a06d79004599608009.txt
Yet, still another realty association keeps the NEGATIVE market statistics coming. Amazingly, it's the New York (state) Association of Realtors, which somehow thinks that reporting home sales dropping for the 4th consecutive month is necessary:
http://poststar.com/news/local/3d5c09d6-fbf4-11df-b44e-001cc4c002e0.html
Oh my. If they are going to remind us that fewer people are buying homes, how do they expect the market to get any better?
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