Real Estate Slump, Whose to Blame?
Anyone that is paying any attention to the economy knows that the real estate market is in a slump all across the United States. But the question remains, whose to blame? Some say it is Wall Street for creating these investment portfolios for the banks and lenders. Some say it’s the banks and lenders allowing anyone with a social security number to get qualified for a home loan that they could not afford. Some say it’s the loan officers who pushed their clients into these loan programs only to line their pockets with more money.
But when you think about it, there has to be more to it?
I do believe that many of the above mentioned contributed to the real estate crash, but I also believe that the Media played even a bigger role! Back in 2004 when the real estate market was taking off, it was the media that informed the public how hot the real estate market was and how investors are flocking to hot markets to make a buck. That’s like telling a child, there is candy on the top shelf, you know the child is going to do whatever it takes to get the candy. So now you have the media informing the public about the hot market and how investors are making money, so now you have uneducated so called investors buying “investment properties”. They don’t want to be left behind, Harvey down the street is buying investment properties!
Fast forward a few years later and the media begins to inform the public that the real estate markets aren’t doing as well, now lenders are filing bankruptcy because they can’t get Wall Street to buy their portfolios. Poeple are panicking, what are they going to do? People that would normally be buying their first home or a second home are now hesitant because of everything they are seeing and reading on TV and newspapers.
So next time you hear of someone that lost their home to foreclosure and you think, “man they got screwed by their lender”, take a second to think how the media played a role.
About the Author
Tony Sena is broker/owner of Shelter Realty in Las Vegas Nevada. For more than a decade Tony and his partners have provided residential real estate and property management services to sellers, buyers, investors, and property owners in the Las Vegas Valley. A Las Vegas native and former police officer for the City of Henderson, Tony brings to the table a unique local perspective that continues to serve his clients well.