Sunday, December 21, 2008

David Lereah Admits he 'Spun' for the Realtors; Takes Responsibility

David Lereah, currently working for Reecon Advisors Inc, now admits he "put a positive spin" on the housing market during the boom and bust times. Mr. Lereah goes on to take responsibility for his predictions while he was at the National Association of Realtors. This comes from a recent interview with Money Magazine article titled 'Former real estate bull admits, "I spun"'.

Q: Were you wrong to be so bullish?

A: I worked for an association promoting housing, and it was my job to represent their interests. If you look at my actual forecasts, the numbers were right inline with most forecasts. The difference was that I put a positive spin on it It was easy to do during boom times, harder when times weren’t good. I never thought the whole national real estate market would burst.

Q: Any regrets?

A: I would not have done anything different. But I was a public spokesman writing about housing having a good future. I was wrong. I have to take responsibility for that.

It is a positive that Mr. Lereah is taking partial responsibility for his actions while he was working at the NAR. It all begs the question is Lawrence Yun also engaging in 'positive spin?'

Additional Links:

Realtor Chief Economist: “I spun” (NJ Real Estate Report)

Another Reason Not to Trust So-Called Economic Experts (Seeking Alpha)


  1. It's just another example of why people can't just rely on one source for information.

    I've been telling buyers in general to be prepared to hold on to a house for at least five years if they are looking to make money on it.

  2. Does not come as much of a surprise to be honest, I think the media has done a complete 180 degrees though in short order over the last 3 months.

    Sharon Hollas - Langley Real Estate

  3. He shouldn't feel bad. That was his job. And for the most part, he did a lot of good for people. Lots of people are scared to buy their first home, he helped give them the confidence to do it. But you can't please all the people all the time. There'll always be somebody griping about something.

  4. "spun" puts a positive spin on "lied".

    Anonymous- Bernie Madoff also helped a lot of people who might have been too scared to get started investing. He shouldn't feel bad either.

  5. anon said "He shouldn't feel bad. That was his job."

    That defense was also by the Nazis at Nuremberg

  6. I enjoyed this content, and the feedback from others is interesting.

    California Foreclosure and REO Services

  7. Thanks for the good read, I will definitely return for an update!

  8. I agree with a comment above, it is better to check for different sources before validating a piece of news