Did you see the article in Sunday’s UT with the NARs predictions for 2007? Among the usual delusional optimism from David Lareh, it says the NAR predicts an increase in the national median home price of 1.2%.
This is an incredibly optimistic prediction, especially considering everyone in the world knows that 2007 is the year the ARM resets are going to hit in earnest. Not to mention the implosion of subprime industry. Even more incredibly, they predict an increase in 2008 of 3.1% for existing homes and 3% for new homes.
Why doesn’t anybody call them out and ask what numerical analysis led them to these numbers. Obviously they pulled them out of their asses because no legitimate economists would predict an increase in home prices in 2007 or 2008.
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