Iowa Realty Says, And Proves They, Ignore The News
Did you catch this on Sunday? It seems that Iowa Realty has switched marketing messages. First it was:
Then the COO of the commercial division seemed to disagree saying the market was “saturated.”
Now it’s more of an “ignore the news and trust us” message. But they have remained true to the “it’s the best time to buy in years” motto.
Here’s a closer image of the text:
National news isn’t Iowa news……..Also from THE DES MOINES REGISTER on Friday, right before this ad ran.
My favorite quote from this article:
“It’s interesting that the industry has invented new ways to lose money when the old ways seemed to work just fine,” he quipped.
But this is the most telling:
Wells Fargo CEO John Stumpf said Thursday that housing is in the worst shape since the economic devastation of the 1930s.
“We have not seen a nationwide decline in housing like this since the Great Depression,” Stumpf told those attending a Merrill Lynch & Co. (NYSE: MER) investment conference.
He anticipates hard times ahead for home owners in financial straits — and their bankers.
“I don’t think we’re in the ninth inning of winding this,” Stumpf said. “If we are, it’s an extra-inning game.
From Sunday (the same day the ad ran)–
From Aug. 22 this article describes Iowa as #9 in the nation for foreclosures.
Foreclosure Wave Hits Iowa Hard
The reasons for Iowa’s high foreclosure rates:
- Poor credit - A large portion of borrowers had poor credit and could get only subprime loans, which typically carry higher interest rates. Iowa had nearly double the percentage of subprime loans with adjustable interest rates in foreclosure as the nation.
- ARMs - Higher-cost subprime loans frequently have adjustable-rate mortgages - or ARMs - that were used as teasers, promoting artificially lower payments to lure financially strapped buyers. Now, the interest rates are increasing two or more times a year, pushing payments beyond what’s affordable.
- Bad appraisals - Many questionable loans were based on inflated appraisals. Larger loans, critics say, meant larger fees for mortgage brokers and lenders.
[note: I highly recommend you read that whole article if you haven't yet. I just highlighted a small portion.]
And last, foreclosures are so bad here that the Iowa Attorney General’s Office has set up a hot-line and foreclosure rescue squad to help those in need. And they have been BOMBARDED. Link.
So thanks Iowa Realty for pointing out so clearly that Iowa news and National news are not necessarily the same. Want to know how the real estate market is? For the real scoop ignore the national AND LOCAL news and look to Iowa Realty, where it’s always the best time to buy in years!!!
Do I think the market is great, rock-solid steady, etc…? No. Do I think it could be a good time to buy? Maybe. Take the Brownstones on Grand for example.
With a market like this, and prices falling, this might be a good time to purchase. Then again, prices could keep falling…. Overall it’s probably better to do your own research then rely on a company who only makes money from you buying or selling your home, and is telling you that it’s always the best time in years to buy.
#1 Hater Says:
Lets recap-
National news says real estate is bad, local news says real estate is bad, presidents of huge banks say real estate is bad and the phone is ringing off the hook at the Iowa Attorney Generals forclosure hotline.
So I guess Iowa realty knows something that no one else does, or they are just greedy looking out for there own selfish interest.
I think we all know the answer.
#1 HATER
Posted on November 19th, 2007 at 10:21 pm
Bethany J Says:
Denial seldom works. Admit the problem and seek to overcome it by being a SERVICE to the people. That is what they need and want.
To make a point that has been made on this blog before, the units with great property managers have great numbers.
I’d like to see that work with the big realty companies, too. I won’t hold my breath.
Posted on November 19th, 2007 at 10:36 pm
Teresa Says:
I found you on google looking up downtown real estate, at first i thought this was a realtor blog until you made some good points. I get sick of all the fill in this form and I will contact you.Those realtor sites are so annoying. Look I just want good solid info, so it was refreshing to hear someone say something that isn’t 100% positive.
I am from Palo Alto and company’s like this are going to be losing market share once company’s like redfin.com come into your market.
I am moving to Des Moines in the spring and probably looking to rent. I was going to look into buying, but who can I trust? I would rather rent then get burned and be buried in a condo. TG
Posted on November 19th, 2007 at 10:40 pm
#1 Hater Says:
Goes to show you throwing money at a marketing department doesn’t solve problems, you have to hire smart people who understand people are more informed then they used to be.
Reminds me of a good quote this hater once listened to.
“In times of profound change, the learners inherit the earth, while the learned find themselves beautifully equipped to deal with a world that no longer exists.”
#1 HATER
Posted on November 20th, 2007 at 12:20 am
Josh Says:
If you need any help just let me know. My email is: josh@downtowndesmoinesblog.com
Posted on November 20th, 2007 at 8:47 am
sara Says:
To me “rock solid steady” was not a good truthful way to describe what the market was doing at the time.
Posted on November 20th, 2007 at 8:20 pm
Trina Braafhart Says:
# 1 Hater - that is a really great quote! Thank you for sharing that!
Posted on November 21st, 2007 at 9:34 am
Trina Braafhart Says:
I also would love to be of service to you if you are in the market to rent. I have been a property manger for a long time (hate to date myself by telling you how long ;–) and I am a huge downtown advocate! I am familiar with many of the downtown rental communities and will help you find the perfect home for you - even if it is not MY property. Guess what else - I love downtown so much that I will help you for FREE!
Looking forward to meet you Teresa, downtown is a fantastic place to live.
Posted on November 21st, 2007 at 9:36 am