For those of you who couldn’t bear to watch yesterday’s video (and hey, I don’t necessarily blame you all that much … I have to look at me, after all, and you don’t) here’s a little more about CNN.com’s accurate yet misleading report about real estate being in a double dip.
Here is the average price per square foot for homes in the Phoenix real estate market according to The Cromford Report:
Right now, the Phoenix market is at about the same price per square foot as it was last September. That alone eliminates any argument about a double dip, at least in the present tense, as the average price per square foot has been climbing slightly off lows reached a couple of months back.
It’s not that the CNN report is wrong, per se … it deals with the national real estate market and what’s taking place on the macro level. But that macro level doesn’t take into account Phoenix’s place in the larger real estate picture.
Phoenix, Las Vegas, Southern California, Florida and other similar locales were among the first places to feel the real estate tumble. We led the way, a dubious distinction at best.
Common sense would dictate that just as these areas led the rise in 2005 and led the fall ever since, they likely will lead the way for the current attempted recovery.
People still are flocking to Phoenix, despite the Goldwater Institute’s best efforts to damage the economy of the West Valley. But that’s another story for another day, and I don’t feel like conservative think tank bashing today.
Just as you can’t necessarily trust those folks at the cocktail parties telling you that they are purchasing properties for pennies on the dollar – they absolutely aren’t – you can’t necessarily trust the national media to tell you what’s happening locally.