Monday, April 30, 2007

Bubble Sphere Roundup

In the last two months the mainstream media has increased thier coverage of the housing decline significantly. Kudos!

Housing Panic continues to pound out the housing bubble message. He asks 'Why do desperate homedebtors think they get to set the price?'.

Not surprising: Litigation over the Subprime Mess


  1. Alright, I’ve reached wit’s end with the misinformation and bad advice given by Washington Post real estate editor and cheerleader Maryann Haggarty in her semi-monthly r/e “chat.” I’ve created a blog to track her misinformation:

    The blog title "Maryann Haggarty Watch" pays tribute to one of the founding father's of "Watches", the David Lereah Watch.

    Here is a sample:

    On the lack of affordable homes in the DC area:

    "The sad truth is that the nation's capital is an expensive place to live, and it's been that way for a long time."

    This is not true. Prices were less than half today's levels, and affordability was much, much higher, just 5 short years ago. The price to income ratio, which compares the median single family home sale price to the median family income, rose from 2.5 in 2001 to 4.8 in 2006 for Washington, DC area. See the raw numbers yourself at Are Maryann & Co. really so ill-informed about which they speak or are they deliberately misleading their readers with revisionist history?

    Read more at the link above.

  2. Heads up :
    Economist Lereah to leave NAR, join Move Inc. next month
    WESTLAKE VILLAGE, Calif.–(BUSINESS WIRE)–Move, Inc. (NASDAQ:MOVE - News), the media leader for the when, where and how to move, announced today that Dr. David Lereah has joined the company as an executive vice president for Move, Inc. and serve as chairman and partner with Allan Dalton, who will be the president and CEO, of a new business entity which will launch in the third quarter of 2007 and which is expected to be transformational for both consumers and real estate professionals.

    Lereah is the nation’s leading real estate economist . For seven years, he has served as senior vice president and chief economist of the NATIONAL ASSOCIATION OF REALTORS® (NAR) as the Association’s spokesman on the U.S. economy, the housing and real estate markets as well as other economic and policy issues affecting the industry in the U.S. and abroad. He also directed the Association’s Research Division, the Regulatory and Industry Relations Division, the Real Estate Services Group and Strategic Planning Activities for the Association.

    “David Lereah has established himself as the ultimate expert for the real estate industry,” said Allan Dalton. “Having David partner with me on this new venture will ensure that consumers and the industry will benefit from his unparalleled knowledge of financial issues and the real estate marketplace.”

    from housing bubble blog

  3. Housing Panic asks

    'Why do desperate homedebtors think they get to set the price?'.

    Simple ... the ones with the gold get to make the golden rules ....

    Sorry, but it's a fact of life, and no amount of whining is going to change it. Accepting that which you cannot change is the first step toward financial stability ... and home ownership.

  4. Lance is right here, but he misses on thing, as usual. You can set the price but it wont necessarily sell. Many home owners are finding that out right now in the DC/MD/VA area. Lance, did you find the address of that townhome that doubled last year? I want to look at it.
    the real bob

  5. To be more accurate, the question should have been:

    "Why do desperate homedebtors think they get to set the price at which their home sells?"

    The seller gets to choose what price to ask, and the buyer (that is, the one with the gold) gets to choose whether to take it.

    So Lance is correct here, the one with the gold (that is, the buyer) gets to choose the price at which the home sells... by choosing whether it sells at all.

  6. "Simple ... the ones with the gold get to make the golden rules ...."

    The ones with the gold get to tell people to love others as they love themselves?

  7. Come on “Lance”. Even rats know when to leave a sinking ship.

    Economist Lereah to leave Realtors for Move Inc.
    By Robert Schroeder, MarketWatch
    Last Update: 1:05 PM ET Apr 30, 2007

    WASHINGTON (MarketWatch) -- David Lereah, chief economist of the National Association of Realtors, is leaving NAR to join Move Inc. as chairman and partner of a new business entity next month, NAR said Monday.

  8. Lance! Why don't you sell your place, cash all the equity, and buy a house (cash) in a non bubble market? Do you have any equity?! I just sold my place and about to buy bigger place in South Carolina....... AWAY FROM THE BULL'S EYE THAT IS CALLED DC !!!! I HOPE YOU HEAR THE ADVICE!

  9. Measured in Gold, RE is actually down. Obviously Lance doesn't understand even this; but, hey, what did you expect?

  10. "Measured in Gold, RE is actually down. Obviously Lance doesn't understand even this; but, hey, what did you expect? "

    That was good for a chuckle.

  11. Here's a graph of Metro Phoenix Notices of Trustee's Sales over the past 11 years.