November 6, 2006
No Love From NAR
First, the National Association of Realtors’ Chief Economist cites San Francisco as an example of a U.S. real estate market in need of a correction. And now, as best we can tell, we’re getting snubbed in the first round of NAR’s $40 million public awareness campaign (“It’s a great time to buy or sell a home”).
The advertisement appears today in the Wall Street Journal and USA Today, and will run Sunday in the New York Times, Washington Post, Los Angeles Times and Chicago Tribune. It will run in the same newspapers again on the weekend of November 12.
What’s going on Realtors? We’re not exactly feeling the love. Are you?
∙ Just Quotes: Et Tu David? [SocketSite]
∙ NAR Bullish on Housing Market [NAR]
∙ It’s a great time to buy or sell a home (pdf) [NAR]
First Published: November 6, 2006 12:05 AM
Comments from "Plugged In" Readers
More NAR propaganda. It really should be entitled "It's a great time to make sure our members can pay their bills".
Interesting they use the August sales figure when September's shows a decline of over 1%. Ooops.
Posted by: Amen Corner at November 6, 2006 8:47 AM
Over a long-term horizon, real estate consistently underperforms a balanced equity portfolio in terms of returns.
More importantly, how can this be a great time to sell a home if there's record inventory? And why would I sell now and possibly forego 88% more appreciation over the next decade?
Posted by: Dude at November 6, 2006 9:29 AM
I love the "High Inventory Wont Last" quote. Uh, if a market has 6 months supply than it should take about 6 months to clear the inventory. Assuming more people don't decide to sell, or take their property off the market.
Posted by: eddy at November 6, 2006 10:00 AM
Of course it's "propaganda", not unlike any other trade association it's what they are supposed to be doing. The bigger question seems to be is NAR hanging SF (and its Realtors) out to dry?
If I was a local Realtor, I'd be pissed about what's been coming out of the mouth of NAR over the past couple of months (if not years).
Posted by: SFSal at November 6, 2006 10:05 AM
How can it both be a good time to buy AND sell?? That just doesn't make sense.
Posted by: joe at November 6, 2006 11:11 AM
Not so sure I agree. If there are lots of buyers in the market (i.e. demand) then it's probably not such a bad time to be trying to sell as well (i.e. supply).
Posted by: Michael at November 6, 2006 2:03 PM
I wouldn't be pissed about the NAR's comments at all. They are trying to get the market moving again. If sellers just sit on last year's prices, that isn't good for anyone, even the sellers, if the market declines. Better to tell them to hurry up and sell now, when they'll be better off.
The problem in this market is not unwilling buyers, it's unrealistic sellers. So a little goose from the NAR, telling them prices will fall further, even if it means it chases away some of the buyers, is a good thing. When prices decline, they'll be back.
But if the market keeps stagnating, and Realtors start leaving for greener pastures, then you won't have enough experienced agents around when you really need them when prices finally drop and the number of transactions goes back up.
NAR is doing it exactly right.
Posted by: tipster at November 6, 2006 4:19 PM
Makes me wonder if NAR really has our best interest at heart...or theirs.
Posted by: Anna at November 6, 2006 4:45 PM
Ever had a car salesman try to talk you out of buying a car?
Posted by: Dude at November 7, 2006 11:08 AM
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