The mainstream media has officially gone overboard in their coverage of the so-called housing bubble. Once again the media has shown that they will go to any lengths to create a housing market panic with their sensationalist coverage. The truth that housing still remains a good investment does not sell newspapers and does not keep viewers glued to their televisions. Tell the public that there exists a massive housing bubble, then tell them that their future is doomed because of the inevitable collapse, and you will have the general public hooked like heroin. This is what we like to call “Chicken Little journalism”.
According to the mainstream media, the existence of the housing bubble is undeniable. If your frame of reference begins and ends with the daily news, it is understandable why you might think that way. Nearly every large media outlet in America is running story after story with quotes from dubious “eggspurts” telling us that housing doomsday is at hand. In the rare case that a conflicting viewpoint is presented, the anti-housing bubble interviewee is almost always portrayed as a nut and a quack. Example:
CU Professor Questions Existence Of Housing Bubble
The warnings have become more common recently: ever-increasing housing prices along with a high rate of risky mortgages make for a housing bubble that could pop and reverberate throughout Colorado's economy.
But one real estate professor at the University of Colorado doesn't believe it...
Here we have an article that is supposedly going to give the other side of the housing bubble debate. Note that the title already makes the anti-bubble interviewee out to be a quack. He is questioning the existence of a housing bubble, which we all know must be real because the media says so. What will this nut do next? Question the existence of a round earth?
Judging from the title, the reader expects this article to present a conflicting viewpoint on the housing bubble. Unfortunately the entire first paragraph of the article does not even mention the professor and his views on the bubble. Instead, the same only media tripe “facts” are once again dragged out in the lead. I thought this was supposed to be an article questioning the existence of the housing bubble? The article goes on to badly present the views that I have outlined in my other posts and generally portray the professor as a nutjob.
Do a search for “housing bubble” on news.google.com and you can find article after article insulting your intelligence by spouting the same garbage. Those that still think a housing bubble is at hand need to examine the source of their beliefs. Is it possible that you have been misled by media coverage? Do the facts really point to a housing collapse? A convincing case against the existence of a housing bubble has already been laid out.
The Media is Not A Reliable Information Source
InvestorElite.com believes that housing is not currently overvalued and will continue appreciating at a nice rate for the foreseeable future. Others may disagree. Obviously the existence of a housing bubble is debatable. What is not open to debate is that media coverage of the housing bubble has been horrible sensationalistic, biased, and one-sided.
Do not base your housing investments or any investments for that matter on media coverage. In the end fundamentals are king and media hype is meaningless.
Article by Ninjak