Saturday, September 20, 2008

Yun Criticizes Bernanke & Media on Negative Stories on Hounsing

Yun criticizes Bernanke & media on negative stories on hounsing. The Times Union reports:

The reason for that gap, in Yun's view, is eroding consumer confidence largely caused by negativity, both in the media and elsewhere, about the market. Yun, by contrast, is more optimistic, believing the housing slump is nearly over.

"The winter months are always weaker (for home sales), but this winter will be better than last winter," he said. "There is this great pent-up demand that cannot be held back any further."

Events of the last few days might make such economic optimism seem far-fetched. And even Federal Reserve Chairman Ben Bernanke has predicted continuing housing market weakness.

Yun, in fact, on Monday rebuked Bernanke for such predictions, saying if it's inappropriate to forecast stock or oil prices, "it is inappropriate to comment on home prices, because people react to that."

To applause from his Realtor audience, Yun said he had made that point in a letter to Bernanke.

And he rued that former Fed Chairman Alan Greenspan is also issuing more negative housing market predictions.

"But there's little that can be done about that," Yun said.


Jim Duncan said...

Without completely discrediting myself in the process ... Dr. Yun has a point.

Taking his comments in a vacuum and looking beyond his track record, he is right. Our government has done a pretty terrible job of predicting anything and they have no business stepping into the private sector - whether that's housing, the stock market or oil prices.

This is one of the few times I have ever agreed with Yun, but it's worth nothing that in this one instance (that gov't should stay the he*l out of the prediction business).

Anonymous said...

What a loser Yun is. I know the guy get paid to cheer for housing. But come on, in this so obvious situation of housing price going south, please shut up and stop acting like a joke.

Anonymous said...

So, it sounds the so called housing market is just a place for lying. Don't say anything different from our lies, so that people can dream on

Jim Reppond said...

What Yun doesn't seem to be aware of, is that Bernanke needs to put the fear of falling housing prices and economic collapse into the minds of congress to get them to get off their butts and do something.

Yun's barely able to see the end of his nose anymore.

Ken Egan said...

Yun is supposed to look at statistics, so how can he say that we are recovering, or that this Winter will be better than last. It's a fairytale. House prices will continue to fall as long as inventory, which is at 3M new homes and condos that are vacant, remains above 1 M. This will be years, not months, and guess what?? It will be when house prices revert to '99 or 2000 levels--remember the affordability issue???

vanilla ice said...

"eroding consumer confidence largely caused by negativity, both in the media and elsewhere, about the market." And the fact that people can't afford houses either, you F Yun!

Anonymous said...

Ken Egan -

The number of new home listings appear to be woefully - and purposely - underestimated.

Found elsewhere:

'Personally I am familiar with "on the pinks" which refers to essentially completed homes that haven't asked for a final inspection from the city. When you look up massive developments like Riverpark in Oxnard list a half dozen units available for sale but once in the sales office it is clear that dozens of similar models are equally available for immediate sale.'