August 20, 2007

The monkey-run National Association of Realtors STILL has their anti-bubble talking points up

Monkeys I tell ya. The NAR is run by monkeys...

NAR Anti-Bubble Q&A:

Since 1968, the national median existing-home price has increased an average of 6.4 percent per year

Most metropolitan areas, especially in the Midwest and South, have not experienced price declines in the era of modern recordkeeping

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.

Overall housing affordability remains favorable in historic terms.

There is virtually no risk of a national housing price bubble

It is possible for local bubbles to surface under the right circumstances, but that also is unlikely in the current environment

The strong underlying demand for homes results from the simple fact that the population is growing faster than the supply of homes

Baby boomers remain in their peak earning years. Echo boomers – the children of the baby boom generation – are just entering the period of life in which people typically buy their first home.

If conditions become unfavorable, home buying may be postponed, but a general price decline remains highly unlikely.

11 comments:

Westside Bubble said...

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.


"Financing costs ... are historically low" ... and now rising, with what effect on affordability, again? Duh!

Anonymous said...

Quit insulting monkeys we will file a class action lawsuit

Anonymous said...

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.

Overall housing affordability remains favorable in historic terms.
--------------------------------

Amazing that in talking point 1 they are willing to use an average over 40+ years. When it comes time to talk about financing costs they only focus on the here and now and don't use the historic averages....

SerpentMage said...

As sad as this is going to sound, but people are believing this. The reason is because people think we have hit the bottom.

Here is my prediction. The market will actually go up for the next three months. And the second leg will kick in around October.

I get this feeling because people are thinking, "oh what the heck let's buy now, because in the long term its not going to make any difference." After all the market always goes up and its just a matter of waiting long enough.

As if that is true....

GreedKills said...

The smart (and honest) realtors aren't the ones trying to sell homes. The smart ones are focusing on renting out the FB's condos for pennies on the $.

Downturn said...

THEY NO NOTHING!! NOTHING!!!

k.w. - southern ca. said...

Housing *only* makes sense when it is affordable - and it is not for the majority of house debters.

Most house debters would never admit they really can't afford to live in an over-priced, poorly built house, but this fact is something more and more are becoming painfully aware of now.

Spending money you never really have *never* makes sense, yet so many people have been doing just that as a standard way of living.

The sh&t hasn't even really started hitting the fan yet, we're just seeing the warm-up.

nar lies said...

Can NAR be sued for misleading the public? Somebody should contact a class action lawyer or FTC. NAR claims that housing affordability remains favorable in historic terms. That is outright lying. Never in history has housing been more unaffordable than today. The average home is 4.5x household income.

Shakster said...

A special Realtor(God to FBs) in my neck of the sticks is telling FBs that they won't get a tax bill on any short sales by the lender because He never heard of that before.Well if a Realtard says it true....well bygumm then it's gottsa be true!!That's why housing only go ups,and interest rates only stay low,and never been any lower cuz they already be low enouph.Damn Fooo to nots be buyin domiciles.This housing market is on FIAHH!!Remax even has billboards wit they sign on fire in the picher.The proof is all around you,just look at them for sale signs.That means housing is selling so good that they gotta have lots signs.Then look what the realtro say,"Ain't never been no more better time to gicha a house"

james said...

SerpentMage said...



Any reason why you think that? Gut feeling?

If it werent for the fed playing games, i think it would be a slide down, as it is, who knows, but i dont think they can contain it for long. Not without destroying the dollar.

Actually, the more i think about it, theres gonna be one more run up, a slow run, to restore market confidence, and get individuals to buy into the markets, as teh big players move their personal, then institutional moneys out. THen they let it go to hell.

Anonymous said...

Since this is about the NAR shouldn't there be a monkey fu*king a football or one with it's thumb up its ass?