Realtors are no longer eating (ramen). Hundreds of thousands of 'em are probably looking for new work (strippers). The corrupt David Lereah, housing cheerleader during the boom, is now calling for a real estate crash (two-faced liar). And the American people should heed his advice (tar and feathers).
Hat-tip to twist at housingdoom for the link
BY DAVID LEREAH
Turnaround hinges on pricing
Today’s home sales slide is something of an anomaly, since past housing downturns have been fueled by big hikes in mortgage rates and economic slowdowns. We have neither of those today; what we have instead are nervous consumers.
Home values got high, affordability deteriorated, and buyers lost confidence. Once property prices come down to more suitable levels, households and investors should get back into the real estate game. That might not be too much longer.
Price growth (year over year) turned negative in the West and Northeast in July, and nationally in August. With luck, eased price increases will continue for the balance of 2006. If they do, we might find that the decline in sales bottomed out in July.
That makes prices key. Sellers need to abandon unreasonable expectations about the value of their home. After all, most home owners have enjoyed substantial equity gains on their property during the real estate boom years. Cutting prices by 5 percent or 10 percent won’t wipe out those gains.
Those of us involved in the real estate profession find ourselves in the unlikely position of favoring price softening. Practitioners are asking, or pleading with, sellers to accept market realities and reduce their listing price.
The housing sector and the U.S. economy need home-sale transactions more than home-price appreciation. Every time a home is purchased, other industries, such as furniture and appliance makers, are positively impacted. Economists call this the “multiplier” effect. You purchase a home; you then need to purchase furniture, appliances, and so on.
In fact, a healthy housing market impacts about 20 percent of the U.S. gross domestic product.
Any short-term pain from slower home-price appreciation will be more than offset by sales gains. Once sales pick up, housing inventories drop. That places welcome upward pressure on home prices once again. And the cycle of life in the real estate markets as we know it continues.
Lereah is senior vice president and chief economist for the NATIONAL ASSOCIATION OF REALTORS®.
November 03, 2006
Ladies and gentlemen, I give you the latest musings from the corrupt David Lereah
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34 comments:
Pathetic.
He should run for Congress. He'd fit right in.
This reminds me of Jimmy Carter's famous malaise speech when he blamed the US comsumer for the poor economy.
Bill
people keep saying that flippers/investors have bailed.
they have not bailed.
they are TRYING to bail.
Who wants to be first to cut their Selling "asking" price by 10%?
If that is enough of a haircut to lubricate the stagnate sales of the copious MLS inventory,
Or, ponder this,
everyone who needs a home,
already owns one.
Speculative Fluckers
(Flippers/fﻕckers) have bailed.
True, they did not get a chair when the music stopped.
I had David Lereah's love child!
Headline 11/3/06:
David Lereah, spokesman for the NAR, was reportedly abducted by space aliens last night! He was found in the desert near Las Vegas early this morning. "They said I was too full of crap for their purposes so they brought me back." Said Lereah.
Asking prices have already come down more than 10% and inventory still isnt moving.
Lowering prices won't really help. The problem is "The Big MO" a.k.a. momentum. The sliding of prices is more likely to make investors cringe than jump back into the "real estate game."
Prices have started to come down and now it will start to snowball.
This guy is still a Baghdad Bob.
I can't believe anybody can be as big an asshole and total idiot as Lereah. Why it took him so long to realize that the NAR's postion shoulda been an emphasis on number of transactions versus the size of the transaction is beyond me. What good is one big sale every three years? Dumb Ass realtors deserve to starve, as they will be doing as this national fiasco unwinds.
can't we just skip forward a year and see how bad it's gotten
it's like having to wait to open christmas presents!
"What good is one big sale every three years?"
Having dealt with salespeople almost all of my working life, both inside the company and out, I can tell you that THAT is the universal ingrained salesman mentality. Much more dramatic and kissy-assed to run to the big boss with a:"Look at my million dollar sale that I made for YOU!" then to bother him 1000 times with $1000 sales. Same dollar amount, but the sales clown would have to work for it! All upper management sees is the high dollar amount at the top, per contract, and rewards accordingly. The shrewd butt kisser serving the money hungry blind! All salespeople can eat death and die!
I posted months ago that the realtors would lead the way in coaching people to lower their prices in order to keep transactions,and their commissions up.
Whats even worse he makes the tenuous claim that "furniture makers" and others would be hurt and make up 20% of the economy. He does not even listed the biggest losers in no transactions,the REALTORS.
Keith,
Do you think Lereah and Ben B. talk to each other to keep their spin straight before they release these "MSM Truths" [end sarcastic tone].
This just in.......
The Latest FOX headlines Spin: Fed Heads at Fed Bank decision making level see employment as much too strong so may raise interest rates, for that reason. (Hpers know the real reason don’t we) Stocks up, gas down, employment rate lowest level in five years, Wages growing faster than inflation???? Touting STRONG ECONOMY because of the GOP? WTF? Now I HAVE heard it all.
Geez.
>> Re emphasis on transactions instead of rising prices
Back in the boom days, emphasis on rising prices was the fuel that drove the suckers in. In this gave confidence to flippers like Corey to keep buying, banks to keep lending, and even Mr+Mrs America to keep trading up, get a second home, etc.
So he was emphasising transactions by fueling demand. No different than the pump and dump sell side analysts during the .COM boom days.
This was my favorite quote from this article:
Once property prices come down to more suitable levels, households and investors should get back into the real estate game.
That might not be too much longer.
While housing will eventually stabilize, the "game" is over. Flipping houses like we are trading baseball cards is going to go the way of beanie babies and cabbage patch dolls.
So much of Lereah's pathetic mindset is on display in this article.
I can't believe he called real estate a 'game'. Does he not get that the point of real estate is so that people have a place to live? These are domiciles - this is not a game, you f!
That lereah article is a total disgrace. So now he fabors price softening. Joey is right. This is all about realtor commissions.
I just don't understand! Normally, Dr. Lereah is so upbeat and optimistic. Yet his latest pronouncement is littered with downer words and phrases:
home sales slide
housing downturns
economic slowdowns
nervous consumers
affordability deteriorated
buyers lost confidence
Price growth (year over year) turned negative
price softening
short-term pain
And did Dr. Lereah really say this? "Once property prices come down to more suitable levels, households and investors should get back into the real estate game."
Dr. Lereah thinks that real estate is a game? So that's what it's all about. Real estate is just a game and the housing market is a casino. But in this case, the house won't win.
Its good to see the market not buying the reuters: "THE JOB MARKET BOOM" bull crap, the building I work at in the evening just laidoff 10 people and has plans to cut it's staff to 20 by the first of the year..outsourcing.
Oh incase your wondering this is only a staff of 75.
jobs report is total BS put out by the government pre-election as a big wet kiss to the incumbents.
watch for (another) significant revision next month.
what a joke
The October data had the following winners and losers by category:
* -26,000 - Construction
* -39,000 - Manufacturing
* +43,000 - Professional and Business Services
* +28,000 - Education and Health Services
* +35,000 - Leisure and Hospitality
* +34,000 - Government
--------------------
for real!
This scum bag Lareah should be publically hung. He only cares about driving commisions. These scum bag builders called me yesterday and said you get get a great deal a house at our base price and all 60K in upgrades for free in LAS VEGAS I told the to stick it up their ass!!!!
I'm looking forward to the day when I can buy a house for 10 coins of maple leaves.
Come on, get real, you don't still watch Fox, do you? Do you?
------------------
Have to. Keep your friends close and your enemies closer.
Aren't you glad I did, so I can pass on their latest insult to our intellect?
Plus, we all know Keith is not watching FOX.
"This is all about realtor commissions."
Naah. It is all about NAR dues. Lierah doesn't care about Suzanne, just his job.
He's only protecting sales. All he wants are transactions at any price, so long as a sale is made.
Notice how he said, "real estate game?" It's a game that both buyers and sellers lose these days with the realtwhores winning so long as their are marks still willing to play the "game."
There's a buyer born every minute.
You mean to tell me that my Beanie-Babies were not investments?!
WHO THE F*CK DO I SUE NOW? I got storage rooms full of the f*ckin' things!
that realtor add is classic!
Its a great time to buy or sell!........same as
Its a great time to fish or cut bait!
Its a great time to sh*t or get off the pot!
SSDD
Lereah and boring Ben are probably having an inappropriate Republican relationship.
I will NOT buy until at least 2000 prices; at that time I will reevaluate whether I am catching a falling knife. Have so far convinced at least three people NOT to buy at this time and the latest news has made me look like a savant. Thanks guys (and gals)!
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