Demand Falling for TICs? I don't think so...

My favorite sensationalists at BeyondChron have an article hypothesizing that sales of TICs have fallen off. Funny thing is, they don't actually ask anyone who might understand the market for some hard data or anyone that could actually tell them what's going on. And no, Ted Gullicksen is not an expert on the real estate market. He's just a self-proclaimed expert in complaining about change.

"The number of unsold Tenancy in Commons (TICs) on the market has been steadily increasing over the past 6 months, precipitating what could be the beginning of the end for the TIC boom. The number of unsold TICs climbed from 104 to 270 between May and October, a trend that can likely be traced both to increased tenant activism highlighting the harmful affects of TIC evictions and the market for Bay Area housing slowly declining."

Ok... Let's look at the real estate market... Inventory has shot through the roof since Labor Day. All across the board. If they had done their homework, they'd see that there are more of every type of property on the market right now. Does this worry anyone? Not really. Does this have anything to do with their silly picketing and protest tactics? Not one bit.

“I think the number of unsold TICs indicates that buyers are getting reluctant about the risky form of TIC ownership at then time when the housing market may be peaking,” said Ted Gullicksen of the Tenants’ Union, which has led many of the protests against TICs. “Buyers are showing they’re unwilling to buy TICs where tenants have been evicted.”

Yeah, you tell 'em, Ted. You got this whole real estate thing figured out, don't you? The number of sales has decreased, not the prices of these sales. And it's due to the fact that there is so much for buyers to see right now, they're taking their time. This happens from time to time in real estate. Sometimes there is little inventory, sometimes there is a lot of inventory. If this trend continues for 12 months, we might see some 'change' in the market, but otherwise, everything is just fine in the world of San Francisco real estate.

Nice try, though, guys. Better luck with your sensationalism next time...