Tag: pending home sales

Media Gets Pending Home Sales Wrong (Again!)

Barry Ritholtz:

The Pending Home Sales Index is down 12.3%. According the the NAR’s statement about the PHSI, that is a negative for the next two months. While their press release emphasizes the 5.3% monthly gain in June, we have demonstrated in the past why that amount to little more than the usual seasonality, as families who are moving try to get into the new homes before the new school year starts.

Most people only read the headlines. If you point out the error, you’re labeled a “Negative Nellie” – but it’s the perfect sign that you are facing someone who lacks even a modicum of intelligence – the attacker is refusing to process any logic because they have reached the crescendo of denial.

While these NAR jokers having been calling bottoms in perpetuity, real estate brokers are likely so distressed about the situation that even they aren’t going to get pissed off about it anymore.

UPDATE: Follow up by Ritholtz…the media was either completely duped, or they’re all about to get foreclosed on so they’re collaborating with the NAR to dupe someone else.

The National Association of Realtors’ one trick pony needs a trip to the glue factory

Lawrence Yun, chief economist of the National Association of Realtors, says housing is looking up, citing increased “mortgage availability” due to a shift – government sponsorship of loans to less creditworthy borrowers is replacing traditional lending channels. This is discomforting for two reasons:

  • Yun and the NAR have (for going on two years) repeatedly denied the existence of a housing downturn; and
  • The lender of last resort has increasingly become the US taxpayer, and the NAR thinks that’s great.

The NAR also noted pending home sales are rising, but you won’t see many reports about the length of time from contract signing to closing, which is better indicator of mortgage availability, or how many of their “pending contracts” actually wind up closing.

This is the National Association of Realtors’ one trick pony – consistently pumping out positive, yet highly questionable, data with the intent of persuading yet a few more buyers into the market. It’s no surprise that while they were calling “all’s great” since 2006, the very people buying are now the ones that seem to be in the most trouble. The NAR says these things knowing fully that as a not-for-profit trade association they won’t be held accountable.

Maybe the next one to call out the NAR should be a glue factory named the Federal Trade Commission.

IN OTHER NEWS: Investors in mortgages continue to struggle with getting hold of their collateral. Yes, continue.

UPDATE: A choice quote:

You can always tell when these folks are lying — the clue will be their lips are moving.

Remember – the general public relies on this news when making purchase decisions.

UPDATE 2: David Gross eviscerates the NAR.