- Miller Samuel Real Estate Appraisers & Consultants - https://www.millersamuel.com -

Dusting Off All The Housing Market Cliches

In Housing Takes a Deep Breath [BW] [1], Businessweek interviews David Lereah, the Chief Economist of the National Association of Realtors. He is one of the most polarizing figures in real estate today. Despite his title, he’s really an advocate for the Realtor trade group giant and he’s just doing his job, which is certainly fine. But lets recognize what the job actually is and not pretend it is something its not.

Whats grates on my patience is that his view points are out of step with what is really happening. I am not a gloom and doomist but it does the consumer a disservice to lay on so much spin.

The advent of the blog culture has called this practice into question. NAR has missed a tremendous opportunity to gain the public trust during this period of market change.

[tired cliches in bold. I wanted to take the opportunity to point them out only because there were so many in such a short interview -ed]

Now he says the housing market is just taking a breather. “We’re going to drop significantly, but it’s not a balloon bursting,” Lereah says. “This is a soft landing for the housing markets.” He expects total home sales to drop to 6.62 million in 2006, from 7.07 million in 2005. Meanwhile, he thinks prices will continue appreciating this year, but only by around 5%, compared with 12.5% during 2005.

Why? Lereah says the growing economy will boost the market, offsetting the negative impact of rising interest rates.