The NAR is in denial right now. They are so drunk from the liquidity punch bowl that they are unwilling to admit that the market is fundamentally changing.
Once they come to terms with this reality, in theory, they should undertake a major campaign to educate their members on the importance of aggressive pricing and price reductions. They only get a commission on a sale that happens, and 6% of 80% of 2005 Value is substantially more than 0% of 2005 Value.
Sure, they have to worry that a downtrending market will scare buyers to the sideline, but once they accept the notion that the market is inevitably heading down, they should be the first to champion pricing at more realistic levels.
That’s not to say that they will act rationally…fear often supercedes logic and pragmatism, but I can see a case for the NAR to become the ally of the Piggintonian.
I agree but it will permanently take away a lot of their talking points, especially vs the stock market. Gems like:
Housing prices always go up, there’s never been a nominal drop in housing prices nationally, houses can go up fast but they won’t decline fast, people always need a place to live, therefore the value never declines, you can’t lose in real estate.
If housing were to absolutely crash in way never seen before and return to 2003 prices in a single year, they lose all those cliches forever. Every commentator on every financial show will bring it up for years. What will be the new slogans.
“houses might go up or down,”” hurry there’s still time to lose money before housing bottoms out,” “mowing the lawn can be just as fun as cashing dividend checks” or my personal favorite “you can have sex in a house, try that with stocks”
I agree but it will permanently take away a lot of their talking points, especially vs the stock market. Gems like:
Housing prices always go up, there’s never been a nominal drop in housing prices nationally, houses can go up fast but they won’t decline fast, people always need a place to live, therefore the value never declines, you can’t lose in real estate.
If housing were to absolutely crash in way never seen before and return to 2003 prices in a single year, they lose all those cliches forever. Every commentator on every financial show will bring it up for years. What will be the new slogans.
“houses might go up or down,”” hurry there’s still time to lose money before housing bottoms out,” “mowing the lawn can be just as fun as cashing dividend checks” or my personal favorite “you can have sex in a house, try that with stocks”
.
