The Media VS Reality In Utah

Take a moment to ask yourself which of these headlines captures your attention:

A) Housing market dragging down U.S. economy, recession inevitable.

or

B) Utah housing market still growing strong with highest home price appreciation for 4 consecutive quarters!

Now take a brief moment to ask yourself which headline is most commonly in the news?

The truth is the news is based on ratings. The truth doesn't always sell, so often the media will embellish with one extreme or the other in order to create excitement and capture a larger viewing audience. The media is a terrible source for economic raw data and information. Lets face it data is boring. There are some facts that we must get through in order to further understand the current housing market.

FACTS: (Exciting or not these are solid truths)

1. The United States began a housing boom in 2001 that reached its peak in 2005.
2. Housing nationwide plateaued and began to deflate in 2006
3. August of 2006 began the sub prime mortgage crisis
4. Buyers who had poor credit or no down payment were suddenly forced out of the marketplace
5. Doomsday hits national television!

Does that pretty much sum up what you have seen on the local news and MSNBC?

Here are a few things that you may have missed about our local community.

1. Utah grows to number 1 in home price appreciation in the nation and holds it's title for 4 consecutive quarters.
2. Job creation in Utah kicks into high gear with 47,900 jobs created in April of 2006
   
3. Utah's unemployment rate hits 3.2% in December 2007. National average is 5%.
4. Fed slashes rates by an unprecedented 3/4% on January 22, 2008
   
5. More rate cuts expected January 30, 2008

So what does that mean?

It means a strong and improving housing market now and in the future. On average home prices nearly double in a 10 year time span. So make it a point from here on out to find out what is going on in your local community from a community expert rather than a reporter hired to make you believe that the end of the United States Economic life as we know it is over. Or for quick reference, do yourself a favor and subscribe to my blog.