Today’s flashback comes at you from January 2007, when Samuel L. Anderson, executive officer of the Master Builders Association of King and Snohomish Counties penned this
free advertisement er, I mean insightful “opinion piece” in the Seattle Times: Local housing market resilient (emphasis mine).
The media have been all abuzz over the past year about the softening in the housing market. … At the same time, local analysts point out that even though home sales in the greater Puget Sound region have slowed, now is still a good time to buy a home, particularly in our area.
What does this slowdown really mean for consumers? Is it wise to sit back and wait for a home in the hopes that prices may drop? Most real-estate experts in our region say don’t bet on it.
The reality is that in a softer real-estate market, buyers are now in the driver’s seat. Prices are competitive and interest rates have held steady at near-record lows. Today’s low rates give first-time homebuyers a golden opportunity to begin building household wealth.
In today’s housing market, the real risk is in waiting to buy a home.
Unlike some cities where the real-estate market is in a slump, the Seattle area is healthy and analysts feel certain it will stay that way. As a result, the deep discounted prices some consumers have been hoping for simply won’t be happening here.
For consumers sitting on the sidelines, the bottom line is simple. Homeownership is always attractive. Besides being a stepping-stone to a future of financial security, homeownership provides a sense of community and personal satisfaction. In fact, studies show that homeowners are more content with their lives, enjoying a stronger sense of belonging and increased activity in community groups.
The above nonsense was published just six months before Seattle-area home prices began a two-and-a-half-year (so far) slide. According to the Case-Shiller Home Price Index, Seattle-area prices have fallen 21% since Mr. Anderson penned his screed declaring it a great time to buy a home and “build household wealth.” I have a feeling that anyone who took his advice is not quite as financially secure today as he led them to believe they would be.
If you’re curious what I had to say about this article when it was published, check out my original post here, but be warned that it’s basically just a sarcastic dismissal, because honestly that’s all the response that tripe like this really deserves from anyone.