Just a few years ago we were all watching reality TV shows aimed at teaching us how to flip houses. It was the housing boom and it was fun to watch people buy cheap, ugly houses, slather on some paint, knock down a few walls and quickly sell their cheap casas for big bucks. But the market has changed, and along with it so has the TV programing.
Looking back it seems really foolish to have bought into the hype and we are all still suffering from the hangover of this buy-low-and-sell-ridiculously-high mentality. All of this was fueled by dozens of TV shows that flooded cable networks like HGTV, A&E, and TLC. The programs encouraged viewers to Flip This House, Flip That House, climb the Property Ladder, become House Hunters, and figure out What’s My House Worth?
More than a few people have blamed the producers of such shows for inflating the real estate bubble. Earlier this year a Wall Street Journal opinion piece labeled HGTV as the real villain of the economic meltdown. Meanwhile, Time magazine named the programming chief for Scripps (which owns HGTV) as one of 25 people to blame for the financial crisis.
Turn on your TV today and you’re more likely to find programs that document the struggles of buying or selling a home. One of my favorites right now treats homeowners’ hankering for a big profit like a bad habit that needs to be kicked. HGTV’s Real Estate Intervention follows around a couple of desperate folks who seem really confused about how much their homes are really worth and are puzzled why their prized possession is languishing on the market. It takes an up-front real estate expert to step in and convince them that their home is way over priced.
In one recent episode a couple from Baltimore needed to sell their house. After touring several comps in the area (priced far lower than their listing) they are handed the dose of reality that they may have to sell their home for less than what the owe on the mortgage. The couple eventually decided to rent their home — something the real estate expert said they could be doing for three to four years before the market rebounds and the value of their house returns.
Real Estate Intervention is just one example of how the networks have been retooling their programs in order to keep up with the economic times and the problems in the real estate market. Other recession-minded shows include For Rent, The Unsellables, and $250,000 Challenge — a new show that follows families who compete in design challenges and win money in order to help pay off their mortgages.
Bravo’s Flipping Out, which chronicles the work of obsessive compulsive house flipper Jeff Lewis, is about to start its third season. But this time around the California housing market where Lewis flips isn’t so hot and he is going to have to figure out how to cope. Sounds thrilling.
Maybe we should all start taking these TV show for what they really are — entertainment, not investment advice.
I think these shows reflect what the trends are more than sway the real estate market. They are purely for entertainment purposes and are so market specific. What I watch someone do in NH is not the same as what could happen here in Austin. Hopefully people get that aspect also.
BTW, love your “colorful descriptions”
I agree that these shows are meant for entertainment. But I also think the whole flipping phenomenon was overglamorized on these shows and maybe inspired a few inexperienced people to get in on it. I’m glad to see new shows that reflect the current market are taking their places.