We all need to stop, think, and let our emotions subside. Articles and headlines from the real estate sector constantly push keywords, slogans, and erroneous real estate data from public files on land issues, sparking irrational reactions. But apart from being emotional, real estate is cyclical and seasonal. As a society, it is our duty to filter the messages conveyed to us. But sometimes it gets complicated. Here are some tips on how to read between the lines of real estate.
Read the full article: I know it sounds like common sense, but most readers don't read the full article and get only the impression of the title and the first two paragraphs. The title of the article is deliberately written in a way that will captivate the reader, regardless of whether the title makes sense or not. Since most real estate articles are written as short stories, the true value of the story - or flow chart - only appears after 3 or 4 paragraphs. Oftentimes, the titles here turn out to be wrong, exaggerated, or irrelevant.
Be Careful with Buzz Words: When using words like “float”, “fall”, and “boom”, be careful. Look at the data presented (if any) and determine if the words have any value. If home sales increase 1% per month compared to month, then on a seasonal cycle of $8,000. The same is true for economists who "predict," "predict" and "predict." If construction is down 17% and only 15%, we are not doing "better than expected". All of these cases are subjective. Don't let emotional expressions and confusing jargon overwhelm you. When the validity of what is written is questioned, the validity of the data can also be questioned.
Use More Than One Source: If an article claims that there are not multiple sources of accurate and sufficient data to support it, compare the report with other reports on the same topic. You can usually find two different rounds in the same data report each day. Our recent article on the real estate craze in the Case-Shiller Index addresses this situation. As the old saying goes, history has three sides; one and the opposite side, with the truth lying somewhere in the middle.
Do your own research: What use is the information to you if you don't bother determining your own interpretation? People share stories to get different perspectives. If you literally spit on someone who is telling a story or experience, you don't add any value to their point of view. If you see two opposing viewpoints, search the internet for live data sources. See how it spins, watch this data closely, and ask yourself questions for clarity. If the desired clarity cannot be achieved, something is wrong.
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