National Association of REALTORS(R) Spin Keeps Housing Market Quiet
Every month, the NAR publishes the Pending Home Sales Index (PHSI) which is a report of the total number of signed real estate contracts awaiting closing, as well as the existing home sales report.
These reports are published and explained by Lawrence Yun, Chief Economist for the National Association Of REALTORS. His job is to extract data from the combined MLS systems across the country and explain to us simple folks what is going on in the housing market. Or is it?
Dr. Yun - Chief Spin-Master For National Association Of REALTORS(R)
The reality is that Yun does not report so much on what is happening in housing, rather he reports on why what is happening in housing is always good. His positive outlook has not wavered, and always "now is the time to buy" reports being published during every market cycle. He certainly is the spin-master-in-chief for the National Association of Realtors.
In the August 2011 Pending Home Sales Report, Yun explained: "The market can easily move into a healthy expansion if mortgage underwriting standards return to normalcy," he said. "We also need to be mindful that not all sales contracts are leading to closed existing-home sales. Other market frictions need to be addressed, such as assuring that proper comparables are used in appraisal valuations, and streamlining the short sales process."
Of course, anybody who (owns a home) or monitors the housing market will tell you that this is just a white wash over the real problem in the US housing markets. Sure, we can whine about tougher lending standards, contracts failing to close (like that has never happened in the past), appraisers being too tough on valuations, and short sales taking an eternity to close. There is some truth in all of this.
Dr. Yun would better serve the public, and the National Association of REALTORS(R) if he would report on the real issue that will plague the housing market for 10 more years. There will be no recovery in 2012 (or '13 or '14 for that matter) and the sooner he reports the truth, the sooner we can work to get it fixed.
These reports are published and explained by Lawrence Yun, Chief Economist for the National Association Of REALTORS. His job is to extract data from the combined MLS systems across the country and explain to us simple folks what is going on in the housing market. Or is it?
Dr. Yun - Chief Spin-Master For National Association Of REALTORS(R)
The reality is that Yun does not report so much on what is happening in housing, rather he reports on why what is happening in housing is always good. His positive outlook has not wavered, and always "now is the time to buy" reports being published during every market cycle. He certainly is the spin-master-in-chief for the National Association of Realtors.
In the August 2011 Pending Home Sales Report, Yun explained: "The market can easily move into a healthy expansion if mortgage underwriting standards return to normalcy," he said. "We also need to be mindful that not all sales contracts are leading to closed existing-home sales. Other market frictions need to be addressed, such as assuring that proper comparables are used in appraisal valuations, and streamlining the short sales process."
Of course, anybody who (owns a home) or monitors the housing market will tell you that this is just a white wash over the real problem in the US housing markets. Sure, we can whine about tougher lending standards, contracts failing to close (like that has never happened in the past), appraisers being too tough on valuations, and short sales taking an eternity to close. There is some truth in all of this.
Dr. Yun would better serve the public, and the National Association of REALTORS(R) if he would report on the real issue that will plague the housing market for 10 more years. There will be no recovery in 2012 (or '13 or '14 for that matter) and the sooner he reports the truth, the sooner we can work to get it fixed.
About the Author:
Joe Manausa MBA, CRS, MBA is a real estate broker in Tallahassee, Florida and writes a analytical real estate blog that reaches thousands of readers each day. You can read Joe's pointed article criticizing NAR and Lawrence Yun for avoiding the truth about the housing market.