Monday, December 10, 2007

The National “Rah-Rah” Association is at it again

While the rest of the nation is facing the cold, harsh reality of the housing downturn, the NAR (National Associations of Realtors) is back in hype mode while trying support their membership. The trade group lifted its outlook for 2008 home sales and insisted the market is stabilizing. In fact its outlook for housing in 2008 suddenly appears to be outright rosy considering the current carnage.

Most other market analysts are not buying the NAR perspective however. “Numerous other economists, however, are far less optimistic than the trade group. They predict weak sales and falling prices through next year and beyond and emphasize that those problems could worsen if the economy sinks into a recession.”

The reality is that the U.S. is at least 18 months away from a housing recovery. Both home prices and sales will slide significantly in 2008 according to most economists that evaluate the sector. It will take more than NAR’s rose-tinted glasses to drag the housing market out of the abyss.

Realtors' Forecast Bucks Common Wisdom (not to mention common sense)