Media Hype

In the past few years I have been increasingly drawn to the notion that the mass media seems to create, not report the majority of the news. Certainly this conspiracy theory isn’t new but until the Real Estate explosion in 2005-2006 I was blissfully unaware of how misguided the reporting could be.
While Calgary experienced Real Estate mania a couple of years ago I was struck by how delayed the media reporting was about what was actually happening in the market, and equally confused when they continued to report a boom when we had already begun to return to a balanced market. Even more shocking was in the later part of 2007 when the media began to hype the idea that the ‘bubble’ was about to burst. In fact at that time we were certainly experiencing a very balanced market with confident economic and financial conditions (at least in this country). However like lemmings we have managed to follow to media to a self fulfilling prophecy and a buyers market. Sporadically there will be reports of increasing prices and activity but only to keep us on this media rollercoaster.
The slumping financial markets have added fuel to the media fire and I am again left questioning how much of this hysteria is actually created by bad media coverage. If someone tells us something long enough are we likely to believe it at any cost. As a new years resolution last year I pledged to stop listening to talk radio in an attempt to find a positive instead of negative focus for my energy. It helped, instead of focusing on all the bad in the news I focused on the reality; what was actually happening in my real life, the things I can actually control. If the stock market plunges I can’t fix it so I shouldn’t worry about it. I get the information I need to make informed decisions, but that information doesn’t come from talk radio or the media at large; I ask professionals in these areas about their thoughts, predictions and opinions. I want the facts not the hysteria.
It is time we take back control of reality. Instead of following, believing, panicking every time reporters demand that of us we need to take stock of what we are living and find comfort in that. Staying informed is very important however think clearly about what sources you use to get your information; the old saying “don’t believe everything you hear” rings true. Ask questions, seek experts and professionals and ask their opinions, think critically and rationally be an informed consumer not a hysterical lemming!
Here is the first step for you: Real Estate FACTS!
Cochrane Real Estate Year to Date: Sales 257, Median List Price $424,900, Median Sale Price $424,500, Median Days on the Market 51.
Cochrane Real Estate same period in 2007: Sales 339, Median List price 409,900, Median Sale Price 402,500, Median Days on the Market 36.
So is it really that bad? Sales have dropped 25%, but the prices have remained fairly steady with a slightly longer marketing time. However sales have actually doubled since 2000 when in the same period only 124 homes sold with a median list price of $174,900 a median sale price of $173,000 and 36 days on the market.
Real Estate continually proves it is a good investment. Don’t get left behind!