The NAR just released their May Existing Home Sales report which showed the US housing market was continuing to decline. Lawrence Yun, NAR senior economist was ready to blame the buyers and was surprised by the 'underperforming market'. The spin continues:
NAR senior economist Lawrence Yun said, 'I think psychological factors are currently the biggest drag on the housing market.' While subprime problems are still a 'headwind,' he said.
NAR senior economist Lawrence Yun said, 'I think psychological factors are currently the biggest drag on the housing market.' While subprime problems are still a 'headwind,' he said.
Yun said buyers are simply waiting to step forward and make purchases. He's found that household formation has slowed dramatically since late 2006, something rarely seen outside of a recession.
"The market is underperforming when you consider positive fundamentals such as the strength of job creation, economic growth, favorable mortgage interest rates and flat home prices," Yun said
3 comments:
"strength of job creation, economic growth"
The GDP can grow at 10% a year, but if Joe Six-Pack isn't pocketing more income, housing does not become more affordable.
"'The market is underperforming when you consider positive fundamentals such as the strength of job creation, economic growth, favorable mortgage interest rates and flat home prices,' Yun said"
I guess ridiculously high prices do not matter. As long as interest rates are low and the economy is good, people should be able to sell their houses for whatever they want. Supply and demand curves do not apply in the 21st century.
Yeah, right. The only matter that keeps housing prices from growing into the sky is "psychology".
I'm so glad that Larry "housing therapist" Yun will put us on his couch and help us get over our denial that housing prices only go UP!!!
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