Ignore the headlines when reading the newspaper. Check the details closely. You will find that what makes for a great headline is not always what is really going on. Spin sells newspapers. Headlines that grab you, that pull on your emotions are not always the full picture. It is only a headline after all.
These days the headlines cry out that the US housing market is falling. That sub-prime is going to cripple the market. Recession looms.
What does the data say?
Take a look at the following graphics and then tell me what you see. Post a comment.
The ‘fall’ in US prices is nothing more than a reduction in the rate of national appreciation rate. If specific markets are really down (they are) then other markets must be up (they are) to produce an annual rise on a national level.
Metro areas that are overvalued, undervalued or ‘spot on’.
Do understand that I am not saying that house prices only go up. There is a correction going on in a number of markets. As people buy specific houses in specific communities the average and the headlines do not matter as much as the details of the specific transaction.
DYOR – Do Your Own Research.
I will follow up this post with the full report details and a link where you can get a copy.