By Hank McGoodabe

January 20, 2009 3:02 PM | Link to this

The DESTRUCTION of our local economy by The Palm Beach Post continues!The Post is still pimping for vultures! The News Media INFLATES FORECLOSURE NUMBERS to scare away home buyers, according to The Business and Media Institute, Realty Trac Says the Media Misrepresents Foreclosure Data dated March 28, 2008. The Palm Beach Post TRIPLES foreclosure numbers with full knowledge that Realty Trac provides statistics based on FILINGS in EACH STEP IN THE FORECLOSURE PROCESS. There are typically three to four filings for every household in foreclosure YET the news media ignores this and MISREPRESENTS the gross number of filings as the TOTAL number of FORECLOSURES. In most case FORECLOSURES are INFLATED 300% by the Palm Beach Post.JEFF OSTROWSKI and The PALM BEACH POST have DELIBERATELY MISLEAD READERS in order to scare away home buyers! The DRIVE BY MEDIA which includes The PALM BEACH POST have WAGED WAR against South Florida homeowners the past four years in order to destroy the housing market. JEFF OSTROWSKI has been particularly deceptive by MASQUERADING foreclosure consultants and SELF-PROCLAIMED VULTURE FUND PROMOTERS as impartial real estate experts to mislead the public with FABRICATED HOUSING HORROR STORIES like the frequently INFLATED FORECLOSURE STATISTICS. Will OSTROWSKI finally BANKRUPT The Palm Beach Post and send 900 Post employees to the unemployment office…it’s only a matter of time!!

By Curious

January 20, 2009 3:10 PM | Link to this

This week The New York Times predicted that media coverage of the housing market would get decisively more positive now that Obama has been elected and help launch a housing recovery this Spring. Too bad they didn’t like Bush maybe things would not have gotten this bad. Better late than never, as we all know “perception becomes reality”. The good news will be welcome.

By Get in the Game

January 20, 2009 4:54 PM | Link to this

Initial post 18 months ago.

Still holds true today guys.

Perception IS reality.

However, in this instance TRUTH is reality.

Consumers do not have ANY money - regardless of what the government nationalizes, subsidizes, or just drops money from helicopters.

The days of sunshine and lollipops are over.

Price is a reflection of EARNINGS…

Everything else is fluff, PR, and paperwork.

In the end, I am confused with all the hype poised towards the residential sector. The prices doubled from 2000-2005, and in many cases in FL, much more than that. Florida homeowners should be running to the bank, not crying so much. You could be living in Oklahoma, Indiana, or Detroit…enjoy those returns.

So, if you have a 130%+ increase over five years, cash out. If you do not need to cash out, wait.

Any institution (CALPERS, Harvard Endowment Fund) or private entity (Warren Buffett) would LOVE 25%+ returns for five straight years (for doing nothing). Why again, doesn’t CALPERS, Harvard, or Warren Buffett own any residential real estate? Oh yeah, almost forgot, they are not S-E-E-I-N-G the true value in the pricing and they are not I-N-V-E-S-T-O-R-S.

In most cases, no improvement in fundamentals, adding significant value (square footage, not the APPEARANCE of value (L-U-S-H landscaping and some paint)), or anything besides just sitting there was done to most properties, but still furnishing a 25%+ yield?

The S&P 500 just took 7 years to rebound from all-time highs; but

Residential real estate IS different, IS insulated, you truly mean IS an emotional wreck of “opinion of value”, inefficiency, and immunity from the supply/demand fundamentals that apply to just about everything else in the open market.

So what if FL home prices drop 10% - 15% in 2007; AND

Another 10% - 15% drop in 2008…SO WHAT

And another in 10% - 15% drop in 2009

Does it truly matter? The individuals who acquired properties in 2000-2002, in most cases STILL have a 100%+ return WITH the drop in prices.

All markets rise and fall. And South Florida is going to fall (in prices) as well. The funny part, the longer Sellers wait, the more multi-billion dollar companies file for bankruptcy, and ultimately the more pain Sellers shall feel.

Perfect example, WCI. Carl Icahn (billionaire) offered WCI $22/share on March 13, 2007. But WCI actually MADE FUN of Icahn and his “insufficient” offer (reads like local Sellers). Well, now that stock is trading at less than $9/share. Real funny, I tell you. And, by the way, WCI shall continue to decline, because Goldman Sachs reported no one, that means GLOBALLY wants to put in an offer. Real, real funny.

So, again why is everyone crying?

Take your profits (which are better than most asset classes for doing NO work); or

Wait until 2012+ when the market returns to normal 3% - 4% annual appreciation, once again.

Trust me, not many people were complaining (even the NAR/FAR cheerleaders) when prices were clipping at 25%+ returns in many areas of the country in the 2002-2004 timeframe. So, why start complaining now?

2009? That’s a dream. Every six months, these “pundits” have been adjusting their rebound timeline to the right (about six months, go figure).

But I am sticking with 2010-2012 for up and down appreciation. And 2012 for NORMAL appreciation.