Pat Kapowich on Internet Charlatans Vs. Real Estate Experts
Dec 10, 2023Marketwise column for the Bay Area News Group and its flagships The Mercury News and East Bay Times
Published: December 9, 2023
By Pat Kapowich
When it comes to digital ‘experts,’ it’s fear versus facts
Q: We are first-time homebuyers. We live in the Bay Area. The chatter on the internet is that foreclosures are increasing in numbers. We are patient. We can wait to buy a foreclosure. Or we can wait until the interest rates on home loans return to the low-interest rates two years ago. Realty gurus on the internet think home prices will fall, too.
Your columns promote homebuying promptly. You rely on your experts. We rely on ours. What will happen with any certainty has yet to be determined. No one knows. So why don’t you present both sides of this homebuying issue?
A: The World Wide Web and the Wild West of the 1800s have much in common: lawlessness and charlatans. The lack of governance is evident. The proliferation of self-proclaimed experts is staggering. Opportunists are capitalizing on fears, trends and misinformation.
The Old West snake oil salesman gained trust. He was preying on the public — the desperate or gullible. The mirror image of today’s digital “expert.” So-called experts use digital means to exploit the fears and desires of many with the words “Housing Bubble,” “Foreclosures Are Spiking” or “Housing Crash,” resulting in tens of thousands of mouse clicks and followers. Sad, but true. Conversely, credible housing experts deal in facts without showmanship. As a result, the reputable garnished hundreds or thousands of mouse clicks and followers.
Let me review points from some of the experts I follow:
On November 29, 2023, Jordan Levine, the chief economist for the California Association of Realtors, spoke to the Santa Clara County Association of Realtors. He said, “We’re not going to probably ever see 3% rates again.” He added, “We’ll have much bigger fish to fry if we do see 3% rates. Cause something terrible has happened in the broader economy.”
Economist Levine said we had the lowest California housing inventory on record in October. He brought a slide to prove it. Another slide touts that 95% of California homeowners have at least 20% equity in their homes. Stating, “98% of the mortgages in California are being paid on time.”
Lawrence Yun, a chief economist and senior vice president of research at the National Association of Realtors, also spoke. He had a slide titled “Distressed Property Sales Rising from 1% to 2% … Non-Existent.”
On December 5, 2023, Dr. Jessica Lautz, deputy chief economist and vice president of research at the National Association of Realtors, gave a presentation to the Real Estate Business Institute. It was thorough, as always. Regarding low housing inventory, she stated, “The lack of building that has been happening for more than a decade now, as homebuilders continue to say, but they have problems bringing inventory into the market.”
A Pulitzer Prize-winning playwright had an appropriate line in a play. It was regarding self-appointed authority figures. The protagonist states, “I wouldn’t hire them to wax my car.” Be careful about taking directions. If you let the internet charlatans drive your thoughts, you will arrive at the wrong destination.
Questions? Or are you or someone you know navigating life’s transitions? Let lauded negotiator Pat Kapowich make your next move easy. Visit Kapowich’s website for free area housing data, insights and trends. Or put his artful blend of specialized credentials, decades of experience and endorsed skill set to work for you. Kapowich instills confidence when buying, selling, relocating or resizing homes. Do not just make a move — make the safe move. Contact him today, Realtor Pat Kapowich, a career-long consumer-protection advocate.
Office: 408-245-7700; [email protected]
