I was just thinking how NAR is desparately trying to spin the news to prop up the housing market.
I think they are going about this the wrong way. They need to sell houses to make money, the quickest route to sales volumn returning to the market is for the prices to hit bottom as fast as possible.
In another words, wouldn’t it be in their best intrest to perpetuate the fear amongst the buyers and sellars so that we hit bottom faster? Un-like lenders, banks and sellers, they don’t lose anything by the price drop (well they might have to sell more house.)
The worst thing for Realtor is for housing to slowly go down & coincide with recession and job-loss. Which we all know are comming. At that point those “buyers” who are waiting in sideline might not have the money (due to job loss, downturn in over all economy.) Oppose to if the price comes down to sane level now or in near future, they’ll probably jump at the chance.
It’s so easy to rip on the NAR because they do make some ridiculous statements , but you have to believe they are informed and have some idea of reality despite what they say.
They probably know most people are not as informed as anyone reading these posts, so they feel it’s better to sugarcoat everything so people don’t panic.
People are emotional with money, and if they see prices fall by 50%, most people WON’T buy. They’ll think prices will contine to drop 50%.
So while people like us WOULD buy, the NAR would rather present the illusion that everything is okay, at the expense of those who listen, while people like us WOULD by at a 50% drop.
The NAR got themselves into this mess though with slogans like “it’s a great time to buy or sell”, and now they can’t do much but lose credibility while waiting it out.
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