CNBC’s Diana Olick and I are on the same page when it comes to using the national real estate market as a barometer on the health of the residential real estate market. It’s a soapbox that I’ve been on for quite some time, and it always warms my heart to read such an articulately written argument for a return to sanity. My favorite part of the article below, with my favorite takeaway in bold:
Housing economists and pundits, as well as Washington policy makers, will inevitably continue to tout the national numbers and fuel national headlines, largely because it’s these numbers that are used to value mortgages and bank balance sheets, and there’s logic to that; still I think it’s a disservice to the sector, which is more regional than any other.
When potential buyers see these national numbers and headlines, they make local decisions that may not be well-founded.
When policy makers see these national headlines, they make sweeping national decisions that may not be in the best interests of the federal budget, all borrowers, and housing’s inevitable regional recovery.