First and foremost I am a REALTOR - but I have differences of opinion on how things should be approached. I am speaking about the current state of real estate and the events that led us to this point. Unfortunately a lot of this situation was also caused by NAR. I think they were cheer leading the nation as it drove over the cliff buying homes on a home buying binge. Their tone always sounded as if 'more homes sold' was always the solution rather than 'something doesn't look right with this picture!" I wonder how this will impact consumers and their perception of REALTORS.
Home ownership levels of primary and second homes climbed trough the roof and NAR was silent on any form of warning. I cannot remember hearing any warnings. In fact... NAR sounded like a parrot that knew only one phrase "It's a great time to buy!"
I do not remember any warning issued by them saying that consumers should buy right, be an informed consumer, or even proceed with caution. NAR came out again trying to dismiss media headlines from even talking about a bubble in real estate. "All real estate is local!" Remember that phrase? As the nation started to plunge over the cliff - they implored us again. "It's a great time to buy!" Economically, the purchase peaks and prices we saw in real estate in recent years were totally unsustainable. That was never acknowledged - yet there were no warnings I've ever heard of. The consequences we all know about - the aftermath of the wreckage is a major problem. The analogy of that reality is to absorb the aftermath of a 'Tsunami" with a single kitchen sponge. NAR's answers at that point again was, "It's a great time to buy!" Then they chose the mantra "Real estate is local!"
As a real estate agent, I do not have economist on staff. Neither do my brokers. NAR does. They have and had access to all the real estate facts and data and trends - otherwise no one would quote them. They had the national bully pulpit and more or less said "No problem." None of NAR's statements ever acknowledged the depth of this crisis, nor the crisis itself. It still does not ring true in any of their public statements. NAR recently screamed and lobbied for more DPA programs even though they had knowledge they were defaulting in record numbers. As agents we were bombarded with requests to contact public officals. One really has to step back and question their motives at this point! Do they even get the severity of what is going on? NAR is starting to sound like like the UAW auto workers union in Detroit - self serving, and disconnected to the events around them. I am sure I am not alone in my sentiments.
So now what to do? It is going to be next to impossible to turn this around in short order especially since unemployment levels are currently breaking all records. I do not think so.
I believe there is a fix for the problem. The fix the broken model is in universally reaffirming the fundamentals of sound lending, correct pricing, and acknowledging the laws of supply and demand. Over building, speculation and impulse buying will not return for many years to come in real estate. We have ample time to set things right. In the mean time there will be a lot of work to do fixing this mess. Prices have to drop, rates need to remain low, we have to build a base on a solid foundation void of speculative bubble, and have real oversight and enforcement of law. We also need to have indictments, prosecutions, and firings of public officials that received bribes and were neglect in their duties. NAR needs to become a beacon and advocate of the consumer once more - ethics require more of the individual and organization other than lip service. We will be judge by our actions.
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