Tuesday, November 15, 2005

NAR & Lereah: Full of Contradictions

The National Association of Realtors (NAR) is busy disputing the 'Housing Bubble Theory.' They make the preposterous claim that 'new analysis of 130 markets by NAR shows no support of a housing bust.' Let us examine some of David Lereah's recent statements. David Lereah is the chief economist for NAR stated

  • 'The air is coming out of the balloons" ( Late August)

  • "'The boom is showing some signs of tiring" ( October 31st )

  • "'Some markets are more susceptible to interest rate risks and shock,' he said. 'I cannot guarantee that there will be no hard landings.'""

  • '"The country is really unbalanced when it comes to the price of a home. The boom has really discriminated across America. The biggest risk I see right now in California and other parts of the U.S. is the element of risk introduced by adjustable-rate mortgages and interest-only loans and negative amortization loans,' he said."

It is time for the NAR and David Lereah to get their story straight. The hypocrisy is quite apparent.

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