We here at KCM are often accused of allowing our belief in the benefits of owning a home to impact how we report on the housing market. We do not hide from the fact that we believe homeownership is a major piece of the American Dream. However, we still try to accurately report on the facts behind all industry news. Yet, there seems to be a consorted effort by some media to concentrate on only the negative aspects of any report which is released on housing.
As an example, when Fannie Mae released their most recent monthly National Housing Survey, DSNews ran an article titled Americans Harbor Glum Outlook for Housing and the Economy. With a title like that, you would think Americans saw both the economy and housing in a free fall.
The Economy
The survey definitely showed that Americans were troubled by the economy:
The percent of Americans who believe the economy is on the wrong track was 78 percent in August, up from 70 percent in July.
Almost eight out of ten surveyed think the economy is going in the wrong direction. That is definitely a gloomy outlook.
The Housing Market
It is true that the percentage of Americans who said home prices would ‘go down’ ticked up compared to last month (27% from 24%). However, the study also showed that sixty-nine percent believe prices would ‘go up’ or ‘stay the same’. *
Also, 69% of those surveyed said it is a ‘good time to buy a home’. That percentage is UP three percent from last month.
How is that a ‘glum outlook’?
Bottom Line
More than two out of three Americans think that prices will remain stable or increase. Over two out of three believe it is a good time to buy. Why is the media telling us that this report shows Americans are glum about the housing market?
*We are not saying we agree with this portion of the survey. We do believe prices will soften. We are asking why the media is reporting on this particular survey and saying something other than what is actually being reported.