Thursday, July 24, 2008

NAR Press Release on Existing Home Sales

NAR Press Release on Existing Home Sales
Any time you want to have a laugh, just go and read any NAR press release.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said there is something of a quandary in the current market. “A recent online survey of Realtors® shows nearly a quarter of potential home buyers are waiting on the sidelines,” he said. “However, timing the market can be very tricky, which is why home buyers should always have a long-term view to build wealth.”

Hey Rich, it's not that tricky. There is only one way for the current market to go...DOWN. And how long term is long term? You might have to wait 10 or 20 years before prices come back to the bubble level.

Lawrence Yun, NAR chief economist, said first-time home buyers are critical to the health of the housing market. “About four in 10 homes are purchased by first-time buyers, which frees existing owners to trade up,” Yun said. “With many potential first-time home buyers on the sidelines, a first-time buyer tax credit would have a significant positive impact on both housing and the economy. Combined with permanent increases to mortgage loan limits and enhancing the FHA loan program, the housing stimulus package working its way through Congress would go a long way toward helping consumers and boosting the overall economy.”

Is there no shame left? I guess if everyone else is getting a bailout, why not NAR? I would rather eliminate real-estate agent commissions? That would do more for housing than a small stimuls package.
Yun said there is a downward distortion in the price data. “With short sales and foreclosures accounting for approximately one-third of transactions, it’s hard to make an apples-to-apples comparison with a year ago when they were only a minor portion of the market,” he said.
He forgot to mention that those foreclosure sales helped make the home sales data look better. Yun would like to mention foreclosures because they hurt price. But not mention it in sales as they help sales. More double talk.
“Sales are now beginning to pick up in Orlando, Fla., Phoenix, and Oakland, Calif.,” Yun said. “Interestingly, sales fell in Atlanta, Houston, and Kansas City, Mo., despite affordable home prices and solid local employment conditions.”
"Affordable" is a relative term. May be Orando, Pheonix, and Oakland are probably picking up because of the distressed sales.

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