Let's Get REAL Estate

We don't usually follow up a post so quickly but today we feel the need for some frank talk...

Today in the Sun-Sentinel one of the front page headlines (and in national news) reads "Home values slide 12.8% in first quarter" according to Zillow. We need to analyze this and bring the TRUTH to your attention! As we have told you (as does the article) that the Realtor Association reported an increase in sales prices by 6-8% over the first few months of the year. This, to us, is the most accurate picture of the current market (here, at least). Let us explain how Zillow is trying to justify their "gloom and doom" headline...This is word for word from Paul Owers (see previous posts for my opinion)...

    "Zillow's analysis includes Palm Beach, Broward and Miami-Dade counties, and its report measures the value of all homes, not just those that sold in a particular market" - Sun-Sentinel May 10, 2011.

Please re-read that again! Here are the questions...

    1) Where are you getting the "values of all homes"? If it's from the Tax Appraiser (at least in Broward) those values won't be out and final until July so they must be using values from last year to justify what is happening this year (they have used this tactic before). Additionally, even if you are using tax info, it is well known that the Tax appraisal is not an accurate representation of actual property value.

    2) If you're not using the Appraiser's info...where are you pulling this info from?

    3) Why would you use all three counties combined when they are so radically different?

I guess our point is that the info they are putting out is questionable at best and inflammatory and irresponsible at worst. If I've said it once, I've said it a hundred times..."They are out to sell papers"...Don't let them mislead you about our market here in South Florida!