A Lot Of Professionals In Real Estate Are Crackpots

July 18, 2024
  • The source of your real estate information is just as important as the content itself
  • Housing gloom & doom sells newspapers and software, no matter the accuracy
  • The US entering the next phase of the housing cycle as some look to cash in

A few decades ago, many of the movie theatres and their marquees were torn down as Times Square in Manhattan underwent extensive renovations. I snapped a photo of this artwork installation and the message has stayed with me. I’ve seen opportunists praying on consumer fears, riding the doom narrative into the ground for a buck, just as housing cycles show signs of potential improvement. Social media has made the news cycle seem rapid fire and of course, many believe all that is written on the Internet with applying critical thinking.

Source: Jonathan Miller

At least ten of my friends and colleagues in the real estate world have recently shared posts on X and articles in tabloids like the New York Post and former stalwarts of journalism such as Newsweek about an impending housing market disaster. Interestingly, all have been sourced from this guy who is selling subscriptions to his app. Normally I wouldn’t pay attention to screeds of impending doom because it sounds familiar and I am always wary of significant generalizations (a red flag). Because so many people I know sent me his posts for a reality check, I looked into it.

His effort reminds me of the housing bubble blogs genre during the global credit bubble nearly twenty years ago. It’s not that bubble bloggers posted a steady flow of new information. Readers would go there for affirmation that they weren’t the only ones questioning the reality of the housing market at that time. I had the granddaddy of all bloggers, Ben of The Housing Bubble blog on my old podcast years ago and it was very informative. Today’s parallel comparison is cable news channels – consumers don’t go there for new information or unfavorable news about their tribe. They go there for community, comfort, and tribalism.

Source: Unknown via Internet

I’m not living in a cocoon claiming that the housing market conditions everywhere are peachy. And I am not defending the housing market itself. It does make me sad that people with social media talent but lacking context can be easily validated by media outlets solely focused on SEO. Critical thinking on housing market issues is often wildly generalized to sell a product.

Most of us remember that old saying that goes something like “If it’s too good to be true, it probably isn’t true.”

How about, “If it’s too bad to be true, it probably isn’t true.”

Did you miss yesterday’s Housing Notes?

July 17, 2024

Many Don’t Fully Understand An Appraiser’s Role And Many Appraisers Don’t Understand TAF’s Role In The Appraisal Process

Image: Chat & Ask AI

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