Yesterday’s report on area home sales in the RTD , while written with an encouraging voice, didn’t portray a true picture of the area’s market. Frankly, I think reporter, Carol Hazard, has been instructed to report the local market more favorably. My guess would be real estate ad revenues are down substantially and why continually bite the hand that feds you. After all, the RTD  just benefited from the Parade of Homes, which is their largest real estate buy of the year. 

     In past reports, she typically leads with the depressing national situation, transitions to the less dire state news, and finally gets around the stronger local situation in the last few paragraphs. Although Carol reversed her style yesterday, I found her report disingenuous. By segmenting the broader market, the  report by George Mason University is able to create certain “talking points” to spin a more favorable condition. One such point would be that total sales in certain areas were up 2 % for the quarter. Readers of this blog know that this “statistical” increase was anticipated since the true decline in total sales for ’07 began in the final 4 months of ’07. When you compare current bad numbers with even worst past bad numbers, it is possible to get a “statistical” (2 %) increase. The truth is total sales are down for the “core area” by 29.81 for ’08 when compared to ’07. That is almost 3,000 less homes sold for ’08 than in ’07 through September. And this current decline follows a 10.9 % drop for total sales in ’07 versus ’06.

      As you all know, I am not a doom and gloomer. The market here is amazingly resilient, especially when compared with other parts of the country. Horror stories from Florida tell of buyers walking away from $150,000 deposits where the “to be delivered” product is worth $ 250,000 less. Here the area’s average sales price has remained constant. The homes that are selling are the ones priced competitively and in superior condition. The key words here are “they are selling.” It’s just not as many as before. This, too, shall pass.