[Photo Credit: Gus Macroy]
The jolly elf/elves at the National Association of Realtors are predicting "near-term softness" which has nothing to do with pregnancy. From their website, David Lereah, totally on top of things or just making it up as he goes along, which adds up to the same thing:
David Lereah, NAR's chief economist, expected the decline. Although the weather improved in March, we're starting to see the effects of a decline in subprime lending and tighter lending standards, he said. Home sales will be relatively sluggish in the second quarter, but a modest uptrend should resume during the second half of this yearIn other words, finally, an admission that the real estate boom touted by Mr, Lereah was in part based on sub-prime lending. More:We're fortunate to have a positive economic backdrop now with job growth and low mortgage interest rates to provide opportunities for buyers who've been on the sidelines or were unable to get into the market during the boom, especially with inventories favoring buyersSo what if he doesn't read the New York Times? Which would have told him last week that unemployment was hovering around 4.5% and climbing. And do we translate inventories favoring buyers as prices dropping? None of which we need concern ourselves about in San Francisco, but we're wondering if the term Real Estate Boom should be rechristened Real Estate Spin.
· Pending Home Sales Indicate Near-Term Softness [NAR]
· Jobs Report Is Weaker Than Expected [NY Times]