LitaWrites (real_lawyer) wrote,

Chief Economist for Realtors doesn't understand the market!

Let me first say that any day that begins by my clock radio announcing that the Miami Dolphins have lost is a good day!

Moving on, the NY Times quotes David Lereah, the chief economist for the National Association of Realtors, as condemning "stubborn" sellers for the projected 7.5 percent decline in real estate sales this year. He says, "The seller is a lot more stubborn than any of us had anticipated. Sellers for the last five years have been in control. It's very hard for them to give up control and revise their expectations downward."

C'mon, who is he kidding? He must know that A) his members, the agents, make more money from higher sales prices and so artificially created these expectations in sellers' minds in order to get their listings; and B) sellers who have very little equity in their home (either from multiple re-finances or from realtors pushing buyers to do 95-100% financing on home purchases in the recent past to keep sales high) cannot afford to drop their home prices.

When you are faced with losing money on a transaction, is it correct to be labeled as "stubborn" when you resist the loss?

I am not defending all sellers, but I'll be darned if I will let one of the major instigators of the marketplace mess we're in blame it solely on the homeowners.
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