Negative News - Ask, Is it Fact or Fiction?
Is there a divide between the headlines and the truth? You bet your sweet bippy there is!
As far back as the mid-1800s, people understood that negative news sells…and sadly, it still does. All forms of media realize that they will get more eyeballs, clicks, likes and engagement by reporting negative, even when there is a real ‘positive’ to the story. Surely they realize that their negative headlines impact markets - and they do.
Just last week, the National Association of Home Builders released a survey revealing that in 2018, negative media reports made 48% of buyers cautious. In 2019, builders project that number to be 62%.
Here are two recent examples of fictitious nature from mainstream media:
Actual Headline #1: Cash-out refis are back – will homes become ATMs again?
The real story: While it is true that the percentage of refinances in which the homeowner received cash at the Closing has increased to levels that existed in 2006, they neglect to mention in the headline that people are NOT using their home equity as an ATM. In fact, the amount actually cashed-out in 2018, compared to a decade ago isn’t even close.
In 2018, $63 billion in equity was cashed out by homeowners. In 2006, $321 billion of equity was used. Today’s equity is being used for things such as college tuition, capital for a new business or to consolidate debt. In ’06, homeowners were utilizing equity for frivolous items including boats, cars, vacations, etc.
Actual Headline #2: Consumer Debt hits $4 Trillion. Americans are diving deeper and deeper into debt.
FACT: Yes, consumer debt, has indeed, hit the $4T mark.
FICTION: The part about Americans diving deeper…Americans are NOT diving deeper and deeper into debt. WHY has total consumer debt become the highest it has ever been? Because the population has grown and continues to grow, as does the economy (prices & wages).
So, how does the total debt rank as a percentage of disposable personal income? That percentage is the lowest on record! People are absolutely not “diving deeper and deeper into debt”. In fact, the exact opposite is true - Americans have less debt now than ever before.
*Story headlines and links to sourses provided by KCM.
If you are thinking about buying or selling a home, it is important that you have a true professional handling your real estate needs - one who has a firm grasp of the true real estate picture. Yes, I have my finger on the pulse of the Charlotte real estate market! Call or text me at (704) 491-3310.
© Debe Maxwell | The Maxwell House Group | RE/MAX Executive | CharlotteBroker@icloud.com | Negative News - Ask, Is it Fact or Fiction?
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