Reading the corrupt Mr. Lereah's latest musings on the bubble, where he "predicted" all along that we'd see an "adjustment", and that we've "now hit bottom", I was reminded of the NAR talking points he put out in December 2005 that said frankly there was no bubble.
Here's the corrupt Mr. Lereah earlier this month:
"We've been anticipating a price correction and now it's here,'' Lereah said. "The price drop has stopped the bleeding for housing sales. We think the housing market has now hit bottom.''
“The housing boom ended more than a year ago, but sellers are having a tough time accepting that fact, says David Lereah,
Yet here's highlights of the NAR's "there is no housing bubble" talking points he put out in December 2005, for use by his army of 6% minions to convince the last suckers in that their investments would be safe.
Let there be no confusion HP'ers (and the MSM who love to rip-and-read his stuff): David Lereah is a seriously corrupt, never-to-be-trusted, completely discredited pawn of the NAR and REIC.
What is a housing bubble?
As broadly interpreted, a housing bubble refers to an unsustainable gain in home prices. The premise is that a price bubble is at risk of “popping,” resulting in a loss of equity.
Has there ever been a national housing price bubble?
No, not since good recordkeeping began in 1968. There was a national decline in the 1930s during the Great Depression; however, home prices were not a prime concern in that era. The greatest issues were essentials such as food, clothing, employment and shelter of any kind. Declining home prices were a natural result of a general economic collapse caused by the stock market crash in 1929.
Should we be concerned that home prices are rising faster than family income?
No. There are three components to housing affordability: home prices, income, and financing costs – the latter are historically low.
What are the prospects of a housing bubble?
There is virtually no risk of a national housing price bubble, based on the fundamental demand for housing and predictable economic factors. It is possible for local bubbles to surface under the right circumstances, but that also is unlikely in the current environment.
If conditions become unfavorable, home buying may be postponed, but a general price decline remains highly unlikely.
What is likely to happen with home prices?
The forecast is for mortgage interest rates to rise slowly over the next year, which will have a minor breaking effect on home sales. The good news is that will help inventory levels to recover and allow the market to come into a closer balance between buyers and sellers.
In other words, a general slowing in the rate of price growth can be expected, but in many areas inventory shortages will persist and home prices are likely to continue to rise above historic norms.
September 29, 2006
Squaring the circle: The two-faced NAR pawn David Lereah's "there is a bubble - there isn't a bubble" confusion
Posted by blogger at 9/29/2006