October 02, 2007

FLASH: NAR Pending Home Sales report plummets to all-time low. In related news, Lawrence Yun has his resume all over monster.com


Some days ya gotta feel sorry for the paid monkeys at the NAR. "We've hit bottom - it's a great time to buy or sell a house and pay a realtor a 6% commission" they'll say.

And then the numbers come out and prove that they're discredited monkeys that nobody believes anymore (except idiots in the MSM of course who allow them to spin unchecked)


Pending home sales at record low - Realtors report shows sharp drop in homes under contract, as mortgage lenders shut off financing needed to close deals.

The meltdown in the mortgage market in August dried up the supply of buyers for homeowners looking to sell their homes, as an industry group report showed the lowest level of homes under contract on record.

"Fewer contracts were being written because of mortgage availability issues, and a separate internal survey of our members shows more than 10 percent of sales contracts fell through at the last moment in August, primarily the result of canceled loan commitments," said a statement from Lawrence Yun, senior economist for the group. "The volume of activity we're seeing today is below sustainable market fundamentals because some creditworthy people are trying to buy homes but can't because of the credit crunch."


28 comments:

Anonymous said...

I like how Yun complains that some "creditworthy people can't get loans".

I bet if he got taken to task like Cramer took the Prez-elect of NAR, he couldn't find a single person who had 20% to put down, a stable job, verifiable income, and good credit who actually got rejected for a loan that was within historical norms, say, 3.5x income.

"Creditworthy" is a term that doesn't mean sh*t. It's the person holding the loan that determines what creditworthy really means and now that all the credit-UNworthy people can no longer get whatever money they need, the house of cards is collapsing.

BB

Agent #777 said...

"The volume of activity we're seeing today is below sustainable market fundamentals because some creditworthy people are trying to buy homes but can't because of the credit crunch."

For a thinking person, isn't this statement an oxymoron?

Anonymous said...

-
-
-
-
gold and silver are falling off a cliff this morning.

Anonymous said...

"It's the price stupid"

-dcandout

Loan_officer said...

Credit Crunch - man it's so tight Donald Trump will Bill Gates as a co-signer and the Virgin Mary as a credit reference couldn't get a loan!

Anonymous said...

Note that NAR is again pointing to mortgage lending as the sole source of problem and that their evil doing was not a factor whatsoever.

Anonymous said...

As dumb as the NAR is, it is even dumber to blame them for the bubble. They are salesmen. They sell. If people were stupid enough to buy and lenders were stupid enough to lend, I really don't see how the NAR is the bad guy in all of this. I don't think any realtor held a gun to anyone's head and said buy a house or else.

Anonymous said...

What's this idiot's idea of creditworthy. Oh that's right,just like the old days, anyone who is breathing...or not... and can sign their name...or not.
"Just Leave It Blank, I'll fill in the rest"... as long as I get my so deserved 6%

Anonymous said...

and it is only just beginning. we have a long long long loooooooong way to drop from here.
IMO, we have not even started to get the the truely ugly stuff.

Anonymous said...

For anyone thinking of buying a property, I urge you to do a credit check on the Realtor (TM).

Anonymous said...

gold and silver are falling off a cliff this morning.

____

Falling off a cliff, really? Gold is still way way up for the year...whatchya talkin' about?

You talk like someone who bought at the top, which is what most amateurs do.

Anonymous said...

Gold was at $730 last friday, now $727 on tuesday.

Wow!! some cliff.

You should have bought a bike with your allowance instead of that one ounce of gold.

Anonymous said...

As dumb as the NAR is, it is even dumber to blame them for the bubble. They are salesmen. They sell. If people were stupid enough to buy and lenders were stupid enough to lend, I really don't see how the NAR is the bad guy in all of this. I don't think any realtor held a gun to anyone's head and said buy a house or else.

October 02, 2007 5:51 PM

So why should anyone listen to these unethical POS's when they say it's a good time to buy?

Avoid using realtors.

Anonymous said...

Anonymous said...
gold and silver are falling off a cliff this morning.

____

Falling off a cliff, really? Gold is still way way up for the year...whatchya talkin' about?

You talk like someone who bought at the top, which is what most amateurs do.

October 02, 2007 6:47 PM

===============================

S&P500 is up for the year.

Housing is up for the past 5
years.

Go back far enough and pretty much any investment is up.

Point is now is a bad time to buy gold and silver. Buying today is like buying real estate in 2005.

Anyone with an IQ over 75 could see that.

Anonymous said...

Anonymous said...
As dumb as the NAR is, it is even dumber to blame them for the bubble. They are salesmen. They sell. If people were stupid enough to buy and lenders were stupid enough to lend, I really don't see how the NAR is the bad guy in all of this. I don't think any realtor held a gun to anyone's head and said buy a house or else.

October 02, 2007 5:51 PM
--------------
Ok, I'll let all 50 states in the union know that they should repeal all laws requiring RE agents to have a fiduciary duty to their clients which requires them to not lie to their clients, not disclose their positions to the other party to the contract negotiations etc. They've been gaming the system just to get paid since the dawn of time and taken cuts from appraisers who "HIT THE NUMBER" and inspectors who "IGNORE DEAL BREAKING REPAIRS" and brokers who "MAKE THE NUMBERS WORK" all so the deal goes through and in the aggregate stirred the froth for ill gotten gains. I'm not even going to talk about how the channelize unwitting buyers into homes that happen to have the largest cut for them. Its all good, as long as the sheeple just go along with it and I do not pull a gun out and force them to sign the papers its all legit.

My @$$ DumbA$$

Ciao Bitch

Anonymous said...

it is an affordablity problem.
people who risk spending more then 30% of their income on Principal and Interest payments are simply nuts.

in a normal world to qualify for a $500,000 loan
a person would need to have saved 20% = $100,000 for down payment + approx. $15,000 for closing costs
at 6.5%, 30 year fixed monthly payments on the remaining $400,00 would be $2,530.00
plus taxes, insurance etc.

in this case, the person would need to earn at least $8,000 a month (assuming 30% of their income)
or $96,000 a year

Anonymous said...

"You talk like someone who bought at the top, which is what most amateurs do."
-----------------------------------

So are you saying that gold is at its peak? I thought that there is predictions of gold going to $1800+. If that is the case, we are no where near the top. Cant have it both ways, either we are at the top or we arent. Which is it?????

Anonymous said...

Old saying: My recruiter lied to me.

New saying: My real estate agent cried to me.

“There is a positive side to the downturn in real estate. The agents who got in the business solely to make a killing probably are selling shoes by now, or will be soon. Most of the agents left are very experienced and were in a career before the run up in prices and the mortgage deceptions started.”

“This bodes well for anybody buying or selling in this depressed market. There seems to be the perception by some on this forum that Real Estate salespeople have no stake in the business outside of a commission. I particularly like the idea that the only ones who are responsible business people, are the brokers.”

“If you have been in Real Estate for ten years you have 75 hours of continuing education (which the agent pays for) on top of the licensing requirements (which the agent pays for). You have probably been involved with at least 100 transactions of which at least 80% closed. I would think the agent may have picked up some experience along the line. How much is experience worth?”

“In case you think the commission is a slam dunk, in the bank paycheck such as an employee would receive - not exactly.”

“Every REALTOR looks at the beginning of every year paying between $700 - $1000 for MLS (required) and web site expenses during the year. Dues for the “reviled” NAR? Total dues and lockbox privileges:over $600/year. Let’s not forget taxes, self employment taxes bump you up to around the 50% mark. Before you complete a transaction for the year.”

“These are hard costs before discretionary expenses such as advertising, office equipment, mobile equipment (laptops, cell), transportation. I think REALTORS have to have a pretty good idea of how to run a business.”

“The leftovers are what you feed,clothe and shelter your family with. People are smart, they can feel a phony a mile away, the good ones usually last.”

“Have a nice day.”

http://tinyurl.com/36v4vm

brokersleaveyoubroke said...

Anon said:
I don't think any realtor held a gun to anyone's head and said buy a house or else.

No, but they said things like "you better buy now or be priced out forever" or "they're not making any more land" or "real estate is a safe investment because prices never go down" "there's no bubble, fundementals support the prices" etc.

Anonymous said...

CLASSIC!! CLASSIC!!
Peter Schiff rips Larry Levin and Mellisa Francois to shreds!

And they have no good argument back! Gotta love it! Emjoy.

http://tinyurl.com/2fmx4m

brokersleaveyoubroke said...

More BS from the NAR. Contrary to what Yun is saying, banks ARE making loans to people who are "creditworthy" in the real world definition of creditworthy. You also need to have a meaningful down payment and the house cannot be overpriced. The best possible case for real estate is that sales return to pre bubble levels. Toxic loans won't be coming back for at least a generation. The S&L fiasco was about 20 years ago. That's about how long it takes us to forget that easy money can't continue forever.

Anonymous said...

No, but they said things like "you better buy now or be priced out forever" or "they're not making any more land" or "real estate is a safe investment because prices never go down" "there's no bubble, fundementals support the prices" etc.

October 02, 2007 8:34 PM

============

And? They are salesmen. Salesmen say all sorts of shit. If you are stupid enough to believe a salesman, too fucking bad, you deserve what you get.

Anonymous said...

Anonymous said...
Old saying: My recruiter lied to me.

New saying: My real estate agent cried to me.

“There is a positive side to the downturn in real estate. The agents who got in the business solely to make a killing probably are selling shoes by now, or will be soon. Most of the agents left are very experienced and were in a career before the run up in prices and the mortgage deceptions started.”

“This bodes well for anybody buying or selling in this depressed market. There seems to be the perception by some on this forum that Real Estate salespeople have no stake in the business outside of a commission. I particularly like the idea that the only ones who are responsible business people, are the brokers.”

“If you have been in Real Estate for ten years you have 75 hours of continuing education (which the agent pays for) on top of the licensing requirements (which the agent pays for). You have probably been involved with at least 100 transactions of which at least 80% closed. I would think the agent may have picked up some experience along the line. How much is experience worth?”

“In case you think the commission is a slam dunk, in the bank paycheck such as an employee would receive - not exactly.”

“Every REALTOR looks at the beginning of every year paying between $700 - $1000 for MLS (required) and web site expenses during the year. Dues for the “reviled” NAR? Total dues and lockbox privileges:over $600/year. Let’s not forget taxes, self employment taxes bump you up to around the 50% mark. Before you complete a transaction for the year.”

“These are hard costs before discretionary expenses such as advertising, office equipment, mobile equipment (laptops, cell), transportation. I think REALTORS have to have a pretty good idea of how to run a business.”

“The leftovers are what you feed,clothe and shelter your family with. People are smart, they can feel a phony a mile away, the good ones usually last.”

“Have a nice day.”

http://tinyurl.com/36v4vm

October 02, 2007 7:41 PM
------
Good speech but next time please ask yourself the following before you post anything that remotely hints at being postive in regards to realtwhores:

"Does anyone reading this blog really give $h!t"

If the answer is YES then post

If the anwer is NO then do not post

If the post at all hits at the plight of a realtwhore the answer is always NO.

So stop wasting space on this blog. We do not give a $h!t about realtwhores PERIOD

boomtown rats said...

* * CAAAARASH! * *

Any questions?

Ah yes, can I have a side order of bacon with that?

Anonymous said...

Anonymous said...
No, but they said things like "you better buy now or be priced out forever" or "they're not making any more land" or "real estate is a safe investment because prices never go down" "there's no bubble, fundementals support the prices" etc.

October 02, 2007 8:34 PM

============

And? They are salesmen. Salesmen say all sorts of shit. If you are stupid enough to believe a salesman, too fucking bad, you deserve what you get.

October 02, 2007 10:37 PM
------------
Yes, RE agents are now worst and lower than used car salespeople. YOu must ignore the fact that by law they have a fiduciary duty to you. A fiduciary duty means you're suppose to trust them, but in our modern age you cannot. Everything they say is assumed to be a lie. If the continue to spout then demand that it be put in writing as part of the contract. They will refuse, you'll have your proof its a lie and then just walk away. Once had a realtwhore lie through his teeth at the settlement table infront of everyone in the room. They are unabashed about breaching their duties to their clients because all the care about is getting paid. Lies are the lubricant to getting paid.

So I feel your pain and understand why you'd be upset about it. The poster that responded just does not understand how some people still think/perceive the role of agent. Obviously if the law has not caught up to reality its no wonder people are being dupped by them.

Anonymous said...

NAR realtors are storming the message boards at 20/20.. Telling people that its you should never fire a realtor.. and that they are on the same level of a doctor or lawyer.. They are there to increase the value of your property... Please educate them..

http://tinyurl.com/ywqwnf

Anonymous said...

Once you have to assume that everyone selling is lying to you, the social bonds that hold the society together crumble.

Try running an economy on THAT.

Anonymous said...

Anonymous said...

Once you have to assume that everyone selling is lying to you, the social bonds that hold the society together crumble.

Try running an economy on THAT.

October 03, 2007 6:36 AM
------------
Agreed but I think what we are seeing now with the housing bubble bust is when people assume the sales people are telling them the truth & rely upon them. It does not matter if they call themselves an agent, a broker or a salesperson etc, they all need to get paid based upon you making the most financially significant purchase in your life (with the potential to lift or scuttle you financially). Thus these parties are in diametrically opposite ends in terms of perspective. Add in greed/desire for transaction volume then you've got problem. There no longer is a community to keep greed in check in terms of reputation & long term repeat business. The law is no help because of the "Parole evidence" rule in contracts which should be called the "liar's get out of jail free card". Thus the only solution is to put/demand that everything be put in writing and protect yourself.