Real Estate Expert Provides Accurate Information
By Bobby Freeman, Florida Realtors® // July 21, 2012
BREVARD COUNTY, FLORIDA – After seeing inaccurate information published in the local media recently about the current state of the real estate industry on the Space Coast, I felt compelled to make sure you have the correct information.
I’m not sure how the media got this wrong since this report was furnished in text format, as well in a video (above) from the National Association of Realtors®.
To get some clarity, I went to the absolute source on this: Walter Molony, senior public affairs specialist at the National Association of Realtors (NAR) in Washington, DC.
MY E-MAIL TO MR. MOLONY:
I’m a Realtor in Cocoa Beach, Florida and I write a real estate column for SpaceCoastDaily.com. I noticed that the local media reported, I believe, inaccurate statements regarding National Association of Realtors numbers.
In Bold is what I am questioning:
The National Association of Realtors said today that sales of existing homes fell 5.4 percent in June to a seasonally adjusted annual rate of 4.37 million homes. That’s the fewest since last October. Economist were hoping for an annual rate of 6 million homes.
My question is, how can anyone predict, or expect, a 37 percent increase in home sales? This would mean an additional 1.63 million homes sold in today’s economy. I can’t find anywhere where the experts were predicting “6 million” in any of NARs or FARs available reports.
Also, here’s another puzzling statement made by the local media, “The national Realtors group said median home price rose 5 percent to $189,400.” However, the accurate percentage is 7.9 percent – not 5 percent.
The media consistently releases inaccurate (and sometimes skewed, in my opinion) real estate information – how can this happen?
Can you tell me if the above statements are true or not?
MR. MOLONY’S REPLY TO MY E-MAIL:
No economist who truly understands the market would expect a sales rate of 6 million, but the source of this misinformation is the Associated Press.
Many AP stories have cited a figure of 6 million as being healthy, but the data and context shows a volume that high is unsustainable. Total existing-home sales over the past 10 years help to tell the story:
• 2001 – 5,335,000
• 2002 – 5,634,000
• 2003 – 6,176,000
• 2004 – 6,778,000
• 2005 – 7,080,000
• 2006 – 6,477,000
• 2007 – 5,030,000
• 2008 – 4,110,000
• 2009 – 4,340,000
• 2010 – 4,190,000
• 2011 – 4,260,000
Note the only years in history where sales reached 6 million or higher were 2003 through 2006 that coincide with the timeframe of easy money and exotic mortgage instruments, which induced buyers into the market who could not have obtained a mortgage in a normal lending environment.
Given population and demographics, we believe a normal market is better expressed as a range – 5 to 5.5 million, varying depending on a wide number of market variables. We agree the market is underperforming given tight lending standards, but not to the extent that AP claims.
We have had several conversations and written exchanges with AP editors and reporters about the misnomer, including the information above, with the most recent discussion yesterday within hours of their story. However, they continue to repeat it for purposes that are unclear.
National Association of Realtors®
ABOUT THE AUTHOR
Bobby Freeman, a life-time resident of Brevard County, has been a top Realtor in the area for two decades. In his first year as an agent, Freeman received a Rising Star award from his Brokers. Since then he has achieved numerous sales awards and has recently been presented with the prestigious RE/MAX Hall of Fame Award.
Freeman, Jennifer McCoy and Nikki McCoy Freeman are family partners for RE/MAX Elite’s McCoy-Freeman Group. Together they have more than 30 years of extensive experience in all aspects of the real estate industry and have sold over $150 million. Among McCoy-Freeman Group’s achievement are RE/MAX Hall of Fame, RE/MAX 100% Club, Certified Distressed Property Experts (CDPE), Accredited Buyer’s Representative (ABR) and voted Best Realtor in Brevard County. The group has been featured in many news publications including CNN Money Magazine, CNNMoney.com, WFTV 9 ABC News, Florida Today, Coastal Condo Living, & Hot Retirement Towns Magazine and SpaceCoastDaily.com.
For more information log on to FloridaBeachHomesandCondos.com