Friday, February 22, 2008

Lawrence Yun Cannot be Trusted

Lawrence Yun, the chief paid spinner at the Realtors Association regularly speaks at real estate related gatherings throughout country. The Rockford Register Star reports:

The chief economist for the National Association of Realtors had a strong message to potential home buyers who may be waiting to see if prices in the Rock River Valley will go into free fall before putting in an offer.“There is no chance of a large price decline in Rockford,” Lawrence Yun told a crowd of more than 400 at Cliffbreakers, 700 W. Riverside Blvd. “There is not a price bubble in Rockford.”

But, can he be trusted?

In September 2005 Yun predicted "The chance of a housing price decline in the DC area is close to zero, in my view. I anticipate that prices in DC will outpace the national average price growth. DC prices will rise at close to a 7 to 10 % rate of appreciation. "

As we know prices have declined significantly in the DC area since Yun's wrong prediction. According to the S&P Case Shiller Index, since September 2005 DC area prices have fallen 8.4%.

Do not trust Lawrence Yun. The general public and media need to be aware of his spins, predictions that have proven very wrong, and his
contradictory statements. Mr Yun is a paid spinner who has lost his credibility.

1 comment:

Anonymous said...

The Rockford Register Star also highlighted the fact that the Rockford Real Estate market had risen approx 20% since 2002.... Not exactly herculean bubble territory, but if it were to decline back to that level(which certainly is in the realm of possiblity) it would take a house thats "worth" $300K right now down to $240K....thats a big difference!!