NAR Spokesman, Lawrence Yun, Spins Home Price Declines
The National Association of Realtors (NAR) Chief Economist, Lawrence Yun, was recently listed by USA Today as one of the experts to listen to when it comes to the housing market. After his most recent ridiculous statements after the largest slide in home prices since the Great Depression, I beg to differ.
As all NAR spokesman before him, Lawrence Yun isn’t paid to “forecast” the housing market. He’s paid to “spin” bad housing market data into buyer-motivating fantasy.
For example, I wrote a post over a year ago, on Lawrence Yun’s predecessor, David Lereah, marking his misleading statements:
“The National Association of Realtors (NAR) reported homes sales in 2006 dropped 8.4% from 2005. This drop was the worst decline since the 14.8% free-fall in 1989.
Now you don’t have to be an economist or even pay much attention to the housing market to know we are at the beginning of a softening market. Of course, the NAR has an economist for a spokesperson and he can’t see it…or he’s lying to keep his job!
Commenting today on the recent report, NAR chief economist David Lereah said, ‘It looks like we’re moving beyond the low for the housing cycle last fall, and buyers are responding to historically low interest rates and competitive pricing by home sellers. In addition, a tightening inventory of homes on the market is supporting prices.’
It was only 12 months ago stories ran on the front page of USA Today telling us how a pizza delivery guy made $200K flipping on a Virginia condo sight unseen. This was also about the time “Flip This House” and other investment “reality” programs hit the airwaves implying the real estate market was as hot as ever.
So how could a $6 Trillion real estate market go from the highest highs to bottoming out in 12 months?
It can’t.
Don’t believe it. Batten down the hatches the storm is just beginning. Don’t let an industry puppet who makes his living spinning bad news into good sway you from reality and the requisite preparations.”
Lawerence Yun is now spewing overly rosy predictions with no data to back it up too. Reuters reported on February 25, Lawrence Yun claimed after an existing home price report showed a 4.6% monthly fall extending the slide for a sixth straight month, the market is “scratching the bottom”.
Scatching the bottom? You’ve got to be kidding…
How dumb does he think we are?
How dumb does the NAR think we are?
Out of the 10 top forecasters named by USA Today, the NAR Chief Economist, was 1 of only 2 forecasters who did NOT predict a recession in 2008.
I think that says it all…
Good Luck!
Author: Rob K. Blake
Published March 21, 2008
Modified March 21, 2008
- Next post in Real Estate:
Home Staging Secrets
It astounds me how many folks take housing market information from real estate agents or the NAR?
Can you say conflict of interest?
March 12th, 2007 at 10:49 pmYou’re right. The slide isn’t over.
Whenever I read anything from David Lereah I just take it with a grain of salt. The guy’s an industry spokeman (who just so happens to have a Ph.D. in economics) so when he’s out there talking up the market he’s just doing his job. The problem lies in the fact that a lot of folks out there rely on the National Association of Realtors for “information.” You don’t get information out of an industry group; you get a sales pitch.
Relying on the NAR view about the housing market is like going to the Automotive Industry Action Group for advice on free trade, or the American Petroleum Institute for counsel on global warming.
As for the housing market, the worst is yet to come for some regions. Others, however, are significantly undervalued. Investing dollars will shift to those regions and will bring them up to parity. The NAR won’t help you spot those opportunities but they’re out there.
January 26th, 2007 at 8:42 amLeave a Comment