Today these three news stories were present in my Apple News app: “The housing market is no longer a wealth-building engine as home prices continue to slump,” “5 reasons behind the U.S housing price surge, leaving many struggling to buy or rent” “Foreigners are buying US homes again while Americans get sidelined.” Notice the conflicting ideas present: one touts a slump in home prices while another points to a surge in prices. Also, pay attention to how each title appeals to your emotions and draws your attention.
The reasoning behind provocative news headlines is that they earn clicks and engagement. The media thrives on producing content that attracts viewers rapidly and spreads quickly. When a news agency creates an article that receives lots of attention, it benefits from more viewers seeing its advertisements – which means more revenue.
To some this “clickbaiting” may seem malicious, but it is purely economics. The way the media works relies on viewers giving them engagement, and in turn they provide media that grabs our attention and holds it. With an understanding in how this operates we gain an edge in how we view and interpret the news on real estate.
I am not saying that all real estate news is an attention grabber or not worth paying attention to. The national news does provide important information, such as updates on mortgage rates and news about legislation that impacts real estate. But beyond the helpful articles, the media often presents a macro view of the real estate industry. These broad generalizations should be viewed as background noise, not the main playbook for your next real estate transaction.
Real estate is hyper-local. Prices, demand, and timing vary city to city but even block to block. So why do we put so much importance on nationwide headlines? We shouldn’t.
As a consumer, you have access to reliable sources of information. Think about your local Realtors – these are the people whose job is to understand the hyper-local market, the practical conditions, and the market segments. They have networks of lenders, inspectors and contractors in your area who will be shaping your transaction in the real world. They can check local data and review past transactions in your neighborhood to give you the information that matters.
Making decisions about your real estate transaction is a high-stakes and emotional process. Don't let your view of your property and local market be clouded by loud headlines. Reach out to a few local realtors you trust, ask them questions, and gain clarity. You’ll learn more than you expect and move forward with more confidence than if you relied only on headlines.
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