Tuesday, December 28, 2010

US home prices hit new lows. Not Phoenix.

The mainstream media are at it again. Chris and I have written about mainstream media and their panicky screamy headlines more times than I can count. Today the media are at it again.

The Washington Post ran a screaming headline this morning: “U.S. Home Prices Drop 1.3% from September to October”. They were almost gleeful when they noted that 6 of Case-Shiller’s 20 major metro markets hit all-time price lows. Oh the humanity!

Case Shiller story, Dec 28, 2010

 

But wait, let’s look at local statistics, not national headlines designed to sell newspapers. Actually, in Metro Phoenix, home prices have been essentially flat since November 2009.

Case Shiller story REFUTED, Dec 28, 2010

Look at the far right hand side of this chart, taken from the local Statistics God Mike Orr at the Cromford Report. This chart shows the median sold price of all home types in the entire Metro Phoenix region.

The numbers are awfully small, even when you click to embiggen the chart. So, so here are the median sold home prices by month, in Metro Phoenix.
$125,000 – November 2009
$125,000 – December 2009
$125,000 – January 2010
$125,000 – February 2010
$125,000 – March 2010
$126,000 – April 2010
$127,500 – May 2010
$127,900 – June 2010
$127,000 – August 2010
$126,000 – September 2010
$125,000 – October 2010
$125,000 – November 2010

Again I say to you my readers: Oh the humanity! The median sold home price has been essentially flat in Metro Phoenix since November 2009. While critics still claim that the federal home buyer tax credit artificially inflated home prices, way back in September 20101 I said that was a silly argument.

Now, the statistics show prices rose by a a mere $2,900 over 12 months. (what the federal government’s tax credit actually did was create buyer demand, which is what this market has needed more of since late 2006)

We’ve said it before and we’ll say it again: remember that the media screams sensational headlines because that’s their job. Rely on your local Realtors and other industry professionals to get you the truthful information without the hype.

Need a Realtor’s advice? Doesn’t matter if you’re ready to buy or sell this instant, or just thinking out loud about your options. Contact us at The Phoenix Agents. We’re here to help. Real Estate. Real People. Real Simple. The Phoenix Agents.