From HousingPANIC: Real Economist (NOT Lawrence Yun) Quotes of Brilliance

"No one is buying into their Kool-Aid; that's why prices are falling"

- Paul Kasriel, chief economist with Northern Trust in Chicago, questioned the Realtors' assessment that this is a good time to enter the market, saying weak sales and prices suggest that potential buyers are smart to be sitting on the sidelines right now.

Lawrence Yun points out that a 70% crash in new household formation is "very unusual". Nice job Larry! Master of the obvious!

When homes get so expensive that nobody can afford a home, guess what?

New household formation plummets and home prices crash.

Ya gotta wonder if Lawrence Yun ever actually took an economics class. I have my doubts...

The number of people who are moving in with friends or family, or sharing apartments or houses to save money, has caught economists at the Realtors association off-guard. The growth in "new households" — first-time buyers or first-time renters — has plunged 70% from last year's rate.

"This is very unusual," says Lawrence Yun, the NAR's senior economist. "Even during a recession, household formations do not slow to this current level."

The Confused Lawrence Yun's quote of the day

''Housing will continue to be a drag to economic growth all the way through 2008"