The US home vacancy rate is soaring like never before, as millions of unwanted and unneeded homes pile up and desperate homedebtors look for renters.
Rents will tumble, and Lawrence Yun is as much an economist as George Bush is a scientist.
Home builders are suffering right now. But Yun says that means they'll slow construction and remove the excess inventory that's depressing prices. He says new buyers are moving into the pipeline, too.
Lawrence Yun: We have seen rising apartment rents, so that is beginning to squeeze those people who are renting. Also at the same time, we have seen rising mortgage purchase applications.
9 comments:
More spin from the paid realtarwhore schill. At least Lierah used to give some type of idiotic economic evidence of how the housing market was at bottom, Yun just flat out lies.
I really think that the NAR has a death wish. Rather than slowly being bled to death by Redfin et al they prefer a quick, sure, painless bullet to the head. Why else would they replace Lereah with another lying Lereah clone?
Another Ya ya Yun.
Keep talking trash. I ain't buying until you admnit prices need to fall back to the long term appreciation trendline of inflation +1%.
And also yo yo Yun I am not using a realtor when I buy.
The MBA survey refers to mortgage applications, not originations, which legally bind borrowers to the mortgage. That is not a problem when lending standards are stable, but in times when lending standards are tightening - as they have been in recent months - more applications are rejected, and therefore, originations go down, according to the new Goldman report.
Yun is paid schill cheerleader for the NAR. He distorts the truth about mortgage application increasing for his and the NAR self servcing need.
NAR is the reason why we are in this mess. Stop your lies! Tell the truth so people can price their houses accordingly. First step, get rid of the excess inventory.
Lawrence (fun)Yun..... another Koolade serving, pot smoking blabbermouth.
I think since some of the country isn't yet in the" Holy Shit" stage yet like we are out west, the NAR will continue to blow smoke until the entire real estate system as we know goes up in flames. All the NAR is a lobby for real estate agents, not a information service. Its like a smoker getting a check up from the tobacco lobby doctor, "Everything's great!" right
I have been an apartment manager in the northwest for 5 1/2 years. We are located in an area that is (as of yet) unaffected by the housing slowdown and we have only raised rent ONCE in 5 1/2 years. And the raise in rent was only $15. We even LOWERED rent $20 rent a year! Now I realize this is not the case at most apartment buildings in our area. However, we cannot be the only ones out there doing this. And remember, these actions were taken in 'good times'. I can't imagine what we would do in bad times.
I avoided buying a house during the 2004-2006 speculative bubble. Rather, I saved and waited patiently for housing prices to correct to their historic norm of 2-3 times area average incomes (during the boom, homes were trading at 5-6 times area average incomes.) While I've seen prices drift gradually lower in the DC area, today's actions by the FHA to raise the conforming loan limits to $762,500 (WELL ABOVE THE AREA AVERAGE PRICE OF $566,000)will surely bring in a surge of under-qualified buyers back into the market and delaying the inevitable asset price correction. The FHA's action, along with Bernanke's insane recommendation to reduce mortgage principal for housing speculators, are directly penalizing renters while rewarding housing speculators. What we are witnessing is the beginning of what I like to call the "New Feudalism" - in which home owners benefit from distortionary monetary and fiscal policies that punish renters by 1) make it easier for existing "homeowners" to stay in their homes (i.e. by forgiving mortgage principal, by offering tax writeoffs for PMI, by increasing conforming loan limits, etc.) and 2) make it increasingly expensive for renters to buy homes (i.e. by artificially restricting the supply of homes on the market by bailing out speculators who would have lost their homes to foreclosure.)
Lawrence Yun is clearly a schill whose predictions are not based on economic reality. However, Yun is just a clown in a cheerleader suit doing what he's paid to do - spout off ridiculous claims in hopes of spurring prospective home purchasers to buy into the Housing Ponzi Scheme. More dangerous is Bernanke who is using currency devalaution in vain hopes of stemming massive deleveraging of financial institutions holding bad mortgage paper. Look for Bernanke next to use the Fed's Auction Facility to start accepting bad RMBS and CDO loans in exchange for 30 day Fed repo loans. In effect, the Fed will monetize all of the bad loans floating around in the financial system which will begin the collapse of the dollar in earnest as the world recognizes that America's balance sheet is sub-prime and that the dollar is inherently worthless.
Now, rather than a housing collapse, I believe we will have a complete collapse of the dollar that will ultimately destroy our economy. And Bernanke is to blame.
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