In Real Estate, The Media Is A Lagging Indicator

As the saying goes,"If you get a great stock tip from the newspaper, TV, or radio, it's already too late." In financial matters, journalism is an outlet for historians. In fact, reporters can be regarded as the accountants of recent events when it comes to the markets. They give us an account of what has already taken place. Stocks, bonds, commodities and all other investment vehicles are far too dynamic for their fluctuations to be captured in real time by the press.

The same rule can be applied to real estate. While real estate is a slower moving commodity than other financial vehicles, the media is only able to report and interpret data findings that have been reported in months prior, and is therefore a historical reference source. This is not purely their fault; it takes time to compile, extrapolate and record real estate performance. By virtue of this time lapse, however, the media is simply ill equipped to accurately report what is going on at the moment in a specific market.

Moreover, the media tends to report real estate activity in very broad terms, providing national, regional, or state statistics with respect to growth, contraction, or new developments. Real estate is a localized industry and varies greatly from community to community. Just take a short drive through your own area, and in a brief period of time, you will see a variety of homes in varying price ranges with different landscapes, school districts, demographics, business communities, etc. Therefore, any attempt to capture developments or forecast trends on a broader scale by reporting national, regional or state based findings fails to give an accurate account of the market condition of a specific location or community. People live, work and play in specific communities, not in general geographical designations. As a result, the media is not only a lagging indicator, but many times misses the mark completely when it comes to providing useful information to guide their readers on the decision whether to buy or sell their homes or relocate to another community (market).

Also, there is a social dimension to real estate that distinguishes it from all other commodities. Homes and businesses are not pieces of paper that can be traded without having a profound effect on the quality of of our lives. Besides the financial considerations, real estate is where we live and play, work and rest, raise our families, make friends, worship and shape our own lives and the lives of those whom we love. We belong to communities, and those around us affect who we are. Where we live directly affects us as individuals, and the media can not even begin to grasp the nuances and particulars that this entails.

Enter the professional Realtor. As a Realtor, I am the first to admit that every local market is different. No self-respecting real estate professional can claim to be an expert in every market. We specialize in communities, and our business is about people. The only way to develop expertise in a given community is to be a part of it. In addition to having an extensive awareness of the recent sales activity, homes currently available, mortgage interest rates and other hard analytical data (all critical to the decision making process), a dedicated professional in our field must also tap into the social makeup of a community by understanding the wants and needs of the client and what the community has to offer in order to fulfill them.

Miami is known the world over. From the famous beaches and electric nightlife of South Beach to the lush backdrop and bohemian eclecticism of Coconut Grove, no other city in America offers the excitement and cultural diversity of our great city. Miami is now home to the third largest skyline in the US (behind New York and Chicago-and frankly, we have better weather). Whether you are looking for a stately Coral Gables Old Spanish residence, a majestic Pinecrest estate, a home on the water to fulfill your need for tropical breezes, or a waterfront condo to get away on South Beach, Miami offers something for everyone.

Don't be misled by media reports of gloom and doom (according to the NAR, Miami sales of single family homes surged 72% higher in May 2009 over the same month last year, and condo sales rose 51%-I guess not everyone is reading the papers!). If your thing is tracking economic activity at the macro level, the media is a great source. If, however, you're looking to buy or sell real estate in Miami. ask a Realtor.