Data In Context, New York Skyline & Katrina
This week’s Top of the Tweets
By Camilla McLaughlin
Half full of half empty? The drop in sales of existing homes as well as new construction continued to be a top story this week. A decline in existing sales following the tax credit was not unexpected although the 27 percent drop was more significant than most analysts anticipated. Data without context fuels those with a penchant for inflammatory diatribe, which means that any number of self described pundits used the most recent data to proclaim the death of the housing market and luxury housing in particular. It seems that many overlook the 6 percent rise in sales of homes priced above $1 million and up. Good commentary comes from Pam O’Conner of Leading Real Estate Companies of the World, @LeadingrePam, and our very own, Mark Moffa, managing editor of Unique Homes magazine.
Debating Prices. Although the new numbers caused some economists to revise forecasts, prospects for price increases haven’t changed. The question is still how much will prices decline in 2010? Although the Case Shiller index showed increases, it is not a forward looking indicator and still reflects the tax credit boost. On a national level, expectations are still that we will hit bottom in the third quarter and bump along the bottom with very minimal appreciation for the next year. The Wall Street Journal’s @NickTimiraos gives a good overview of projections.
The incredible, shrinking American home continues to hold sway and the McMansion debate — initially sparked by a report from Trulia — continues to give anyone who needs a blog focus or juicy Tweet a topic du jour. Here too, a little context is needed. The folks at the Institute for Luxury Home Marketing put it into perspective. Last week, the company commented on the debate by saying “we’ve seen a trend toward smaller homes but it is all relative,” which means one person’s downsized home is still another’s McMansion.
The approval of an office tower near the Empire State Building in Manhattan led to a tsunami of Tweets about a wave of possible new skyscrapers with the potential to change the New York skyline. According to The Wall Street Journal and others, at least eight new skyscrapers could be constructed in the next 10 years. When it’s completed in 2013, the tallest building, 1 World Trade Center, will rise to be 1,776 feet and will tower over the Empire State Building’s 1,454 feet.
Bubbles in Singapore may be on the rise, but the government hopes to keep property markets in check. Last week, the Singapore government introduced measures to curb speculation. To use a favorite expression of some economists, it might only be described as “frothy.” Read the Wall Street Journal’s recap of this market.
The Katrina anniversary made a lot of news this week. I’ve been to the Big Easy four times since the storm. Although there is a lot of work still to be done and many bear the scars, the city is vibrant with an even more fervent zest for life, which makes me wonder why it was on a recent list of dying cities.
Social Media Musings. A recent study conducted by the Pew Research Center on social networking shows Boomers are still up to learning a few new tricks. The number of Internet users aged 50 and older who use social networking doubled from 22 percent in April 2009 to 42 percent in May.
Canine trivia—I couldn’t resist. Winning the VPI Hambone Award for most bizarre pet insurance claim was a Labrador Retriever who ate an entire beehive. That beats my own lab who put her tongue in a paper shredder.
