Comments on: Existing Home Sales Record Price Drop

By: Pete

Pete — Tue, 25 Nov 2008 12:12:44 +0000

Another interesting CR RE article on home sales turnover .. CR was on a roll 11-24-08 – -http://calculatedrisk.blogspot.com/2008/11/existing-home-sales-turnover-will-slow.html
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By: Pete

Pete — Mon, 24 Nov 2008 23:05:32 +0000

Interesting CR article ( http://calculatedrisk.blogspot.com/2008/11/nar-re-default-rate-50-of-modifications.html ) on high default rate of modified mortgages .

By: letgoandrelax

letgoandrelax — Mon, 24 Nov 2008 22:40:14 +0000

“Funny, I do not seem to recall them warning about upward distortions of prices due to the combination of absurdly easy credit, ultra-low rates, and the appraisal fraud some of their membership helped to promote.”

Barry, why do you hate america?

:^)

By: winslow

winslow — Mon, 24 Nov 2008 21:07:24 +0000

I just viewed a documentary about communist China. The party stays in power by making the populace believe in certian ideals. Actual facts do not have to be used. Kind of sounds like NAR.

By: Winston Munn

Winston Munn — Mon, 24 Nov 2008 18:51:52 +0000

NAR Speak:

““Over the past 30 years, the median price of existing homes has increased an average of more than 6 percent every year, and home values nearly double every 10 years, according to historical data from NAR’s existing home-sales series. Thanks to the power of leverage, a homeowner’s return on investment is even more impressive over time. ”

English Translation: More house + less down = bigger commissions

By: R. Timm

R. Timm — Mon, 24 Nov 2008 18:37:41 +0000

I don’t see anything “absurd” about the NAR cheerleading for higher home prices. Their members typically get paid as a percentage of sales.

By: Winston Munn

Winston Munn — Mon, 24 Nov 2008 18:36:26 +0000

It now becomes clear. Obviously, the U.S. was invaded some time in 2006-2007 by a viscious, Grimm downward-distorting price fairy who proceded to downwardly distort prices in not only houses but all manner of assets, including the stock of Bear-Stearns, Lehman Brothers, and Citigroup. The bailouts we are seeing are not really cash bailouts but the use of anti-fairy gold dust to dilute the effects.

That would explain the Goldilocks economy….

By: kwsmith2

kwsmith2 — Mon, 24 Nov 2008 18:12:52 +0000

NAR is an industry group and they are selling real estate. Of course they are cheerleaders. I don’t see why its such a big deal.

By: JohnnyVee

JohnnyVee — Mon, 24 Nov 2008 17:26:35 +0000

“This is another of those “Looks bad, actually is good” data points. Prices remain elevated, and the sooner they revert back to historic means, the better.”

As I recall, at the start of the recession in 1929, someone important at the time said let the market go down, let businesses fail, liqidate employment, etc., so the market can adjust and the USA can recover. Your “look on the bright side of life” statement seems similar. Also, any action that would tend to distort markets/prices would be bad and, therefore, all of the bank bailouts. Market distortions is US capitalism.

By: Bruce N Tennessee

Bruce N Tennessee — Mon, 24 Nov 2008 17:04:41 +0000

Wait just a doggoned minute…I regularly visit the NAR website…you mean to tell me we are having some sort of real estate downturn? Who says?