I decided to start this blog out of frustration with the South Florida Sun Sentinel. I noticed that their coverage of the local South Florida real estate market has become increasing sparse. As of today, the Sun-Sentinel has not published any local stories about residential real estate in South Florida since June 26th, 2007. That’s over 3 weeks without a story.
This wouldn’t be a huge issue had the Sentinel been consistent. However, back in 2005, when the residential real estate was booming, the Sun-Sentinel published an article nearly every day about local market conditions. On Sundays, they usually had two or more stories.
They were front and center among the real estate cheerleaders back in 2005 and now that the market has tanked, the Sentinel has become mute. Their silence is outrageous. In my opinion, South Florida is currently facing a massive real estate crisis that will absolutely devastate our local economy. There are currently over 111,000 homes for sale in the Miami MSA (Dade, Broward, and South Palm Beach County), the highest level in our history. In addition, there are over 60,000 homes that are in some stage of foreclosure. Prices are rapidly falling (over a 20% drop in the median price since 2005). Yet, now the Sentinel goes silent?
Why? I’m not positive, but my guess is that they’re responding to pressure from their advertisers. Look at the print edition of any Sun-Sentinel and you will see that the majority of their ads come from real-estate-related industries (realtors, developers, home improvement companies, mortgage brokers, property insurers, and retailers like Lowes and Home Depot). I have little doubt that Realtors are not happy when the Sun Sentinel publishes stories about the true state of our markets and have threatened to spend their advertising dollars elsewhere. Since there isn’t anything positive to print, they have simply stopped printing articles about local real estate other than a few random fluff pieces.
So, I figured that a blog was a perfect solution. There’s plenty of data out there that allows non-journalists, like me, to follow local market trends. We can link to other news sources haven’t been swayed by advertisers. Most of all, there are plenty of people out there that can provide their own anecdotal experience with the local market.
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9 comments:
Is it really any surprise the Sentinel is not publishing the truth? The decrease in home / condo prices is going to continue and has a great impact on the economy. You are correct that they would be hurt by telling the truth of what is really going on.
Eventually, the Sentinel and the other MSM will capitulate. They may be quiet about the housing bubble burst right now, but eventually their readers will start demanding coverage. Still, I expect they will always spin their coverage to let their readers know that “now is a great time to buy.”
The Miami Herald isn't printing any stories about the market either. And the worst part about it is that every real estate is warning local that the Europeans and south Americans are going to buy up everything., but like I said in a different blog:
my boss (he lives in Italy and comes here once a month) thought it would be a good thing to purchase a house here so he wouldn't have to keep staying at a hotel. What he found was that an $8,000 tax bill and the rising insurance are costing him more than he expected (that doesn't include the extra expences e.g. lawn care and utilities) and now you can see his house listed on Zip realty. It's more cost effective for him to stay in a hotel for a one week every month (since he get's a frequent visitor discount) than to pay to own.
You're right; The Miami Herald hasn't been much better. However, at least they do run the occasional story albeit with a pro-RE spin.
Keep in mind that millage rates have no increased in most South Florida counties. Thus, the tax increases are entirely due to increasing prices. When price when up, taxes went up. Now that prices are coming down, taxes should come down.
Unfortunately, this assumes that politicians will leave millage rates the same. I don't have much confidence that this will happen.
Did you see the latest report, Forbes on July 19 listed Miami as the riskiest market in the US (I heard it on the radio) and found it @ http://www.local10.com/news/13721122/detail.html
and of course there is some real estate "Guru" talking about how "Miami is in a recovery phase and that some will recover better than others" it just more crap spewed out by Real estate agents to keep prices up and their commissions higher
and try to scare buyers to make quick home purchases when most buyers are waiting.
"Did you see the latest report, Forbes on July 19 listed Miami as the riskiest market in the US (I heard it on the radio) and found it @ http://www.local10.com/news/13721122/detail.html"
Thanks. I added that to the June 20th news. When ever you see local real estate news, please let me know and I'll add it to the front page of the blog.
I have a winter home in Boca Raton and just saw the news report that the Palm Beach County Tax assessors office is sending out this years tax notice with a 5% property evaluation increase! What a crock! Property values have gone down at least 25% - 30% in my neighborhood since the peak! Many second home owners like me are getting fed up and dumping their condos onto the market due to property tax issues like this. Some I know don't care what price they paid, they just want OUT! They will take their losses and move on. This will only feed the downturn in the market.
Thank you for starting this blog. I think its criminal that the print and TV news media are ignoring the public interest for their advertisers. I agree that the RE industry hopes that if folks don't have the facts, they can tell us whatever they want to start the Bubble again. I got an email from a Ziprealty realtor claiming the Buyers market was over and I'd better buy now before prices skyrocket upward in the next few weeks. I hope you can get the real facts, but how will you get them. EWM, and the FAR are not giving the facts anymore or are lying.
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