NAR's Anti Bubble Predictions In Sarasota Bradenton Proven Wrong

In October and November of 2005 the National Association of Realtors (NAR) released their preposterous anti-bubble reports. In these reports propaganda handouts, the NAR basically said that in all housing markets that it would be extremely unlikely for prices to decline by 5%. The research on these reports was led by David Lereah who is the discredited chief economist of the NAR.

In their Sarasota - Bradenton report (pdf) the NAR claimed "price declines in the local market are unlikely according to our stress test." They also claimed that "the local housing market will experience a price decline of 5% only under extreme unlikely scenarios. For example mortgage rates rise to 9% in combination with 33,000 job losses could lead to a price decline."

Well mortgage rates are nowhere near 9% and also there has not been 33,000 job losses in the Sarasota -Bradenton metro area. Yet despite this "Prices remain the story in home sales, with Sarasota-Bradenton prices falling 18 percent in October, the second biggest drop in the state. The median sales price in the Sarasota-Bradenton market was $277,900 last month, compared with $340,700 during the same month in booming 2005. (Herald Tribune)."

On November 15, 2005 I criticized there reports saying that "The work of NAR on these housing reports is contradictory, deceitful and lousy. NAR should be ashamed of their research."

There anti-bubble reports have been proven wrong. The NAR's work needs to be debunked more by the mainstream media. The National Association of Realtors cannot be trusted.