"How's the Market?" March 2019 | TF + KCM

TL;DR

Media misrepresents housing market; recession fears are overblown.

Transcript

hey welcome to house the market for March of 2019 I'm Tom Ferry presenting this in conjunction with keeping current matters so this month we're picking up where we left off last month with the negative media headlines that aren't exactly accurately representing the state of the real estate market now think about it when most people hear that word r... Read More

Key Insights

• The media often misrepresents the real estate market, leading to misconceptions about an impending housing crisis.
• Historical data shows only one out of the last six recessions negatively impacted the housing market.
• Negative media headlines will likely continue throughout 2019, necessitating a proactive approach in communication.
• Early 2019 indicators are strong, suggesting the media's portrayal is not aligned with current market realities.
• Public perception of a recession mirrors the 2008 crisis, but experts argue it's statistically unlikely to repeat.
• Current inventory levels are not comparable to 2008, with no overabundance of homes on the market.
• Real estate professionals should use KCM's resources to educate clients and prevent panic.
• Three key articles from KCM provide valuable insights to counteract negative narratives and reassure clients.

Questions & Answers

Q: What is the main issue with media headlines about the real estate market?

The main issue with media headlines is that they often misrepresent the state of the real estate market, creating unnecessary panic. They tend to focus on negative aspects and draw inaccurate parallels to past crises, particularly the 2008 housing crash, which can mislead consumers and impact market behavior negatively.

Q: How did past recessions impact the housing market?

Historically, only one out of the last six recessions had a negative impact on the housing market. This suggests that while recessions can affect various economic sectors, they do not automatically lead to a housing crisis. Understanding this historical context is crucial for accurately assessing current market conditions.

Q: Why is it important for real estate professionals to control the narrative?

Controlling the narrative allows real estate professionals to provide accurate information and counteract misleading media headlines. By doing so, they can prevent consumer panic, maintain market stability, and guide clients through informed decision-making processes, ultimately fostering trust and confidence in their expertise.

Q: What are the early 2019 indicators for the real estate market?

Early 2019 indicators suggest a strong real estate market, contrary to negative media portrayals. These indicators highlight robust demand and manageable inventory levels, which are vastly different from the conditions leading up to the 2008 housing crash. This positive outlook should reassure consumers and guide professional strategies.

Q: How does the current inventory level compare to 2008?

Current inventory levels are not comparable to 2008, as there is no overabundance of homes on the market. While inventory is rising, it remains a challenge in many mid to low-end price ranges, which prevents the creation of a market crash similar to that of 2008, ensuring more stability.

Q: What resources can real estate professionals use to educate clients?

Real estate professionals can use resources from Keeping Current Matters (KCM), including articles that debunk myths about an impending housing crash and explain why an economic slowdown won't crush real estate. These materials help professionals provide accurate insights and maintain consumer confidence in the market.

Q: What misconceptions do people have about a potential recession?

Many people mistakenly associate a potential recession with the 2008 financial crisis, fearing a similar housing market collapse. However, experts argue that such an outcome is statistically unlikely, as current market conditions, particularly inventory levels and demand, differ significantly from those preceding the 2008 crash.

Q: Why should professionals refer to KCM's blog articles?

Professionals should refer to KCM's blog articles to access well-researched, data-backed information that counters negative media narratives. These articles provide valuable insights into current market conditions, helping professionals educate their clients, control the narrative, and prevent unnecessary panic within the real estate market.

Summary & Key Takeaways

• Tom Ferry discusses the misrepresentation of the real estate market by the media, highlighting that only one of the last six recessions negatively impacted housing. He emphasizes the need for real estate professionals to educate their clients using data and resources from Keeping Current Matters.

• The podcast addresses the fears of a recession akin to 2008, explaining that current market conditions, particularly inventory levels, are vastly different. Early 2019 indicators suggest a strong market, contrary to media narratives, and professionals should control the narrative to prevent consumer panic.

• Ferry encourages real estate agents to leverage articles from KCM to combat negative headlines and provide accurate information. By understanding historical data and current market trends, agents can better guide their clients and maintain stability in the marketplace.