Alan Greenspan Addresses National Association of Realtors Midyear Meeting

By
Real Estate Broker/Owner with Lazarus Realty

Why the National Association of Realtors would hire the most prominent architect of the Housing Bubble to speak at their midyear meeting is totally beyond me understandable: they want to hear some someone "talk their book".  Greenspan certainly has the credentials.  His management of our nation's money supply fueled the bubble and lined the pockets or Realtors.  How can they not love and revere him?

I was particularly intrigued when I heard him say "We are finally beginning to see the seeds of a bottoming" which he immediately followed up with "NOT IN PRICES YET"  Folks, I would take that as a WARNING: we have not seen the bottom yet.  Yes, a bottom of sorts has formed and we have been bouncing along it, but the possibility of a ledge (or cliff) before us still exist.

Bear in mind this is the same Greenspan who said"   "“I suspect that we are coming to the end of this downtrend, as applications for new mortgages, the most important series, have flattened out,”  in Oct of 2006 

 

Comments (2)

Brian Brumpton
Keller Williams Boise - Boise, ID
Boise Idaho Real Estate

Randy,

There are some signs of bottoming in our market.  Sales are up and unemployment has stopped climbing but the housing inventory has also been creeping up and median price continues to trend downward. 

What I'm curious about is how much lower they can get.  We're already well below the cost of replacement in some areas.

May 15, 2009 11:53 AM
Randy "Lazarus" McAtee
Lazarus Realty - Fresno, CA
Owner/Broker, Lazarus Realty, Fresno California

Brian, sales are up here too but unemployement continues to rise here and prices continue to fall.  I hear banter about prices firming in our market -- but from what I see it looks like they are still trending down.  Perhaps all prices will trend down way further including material and wages. 

I just shopped my homeowners insurance and they had the replacement value of my home WAY higher than the market value.

May 15, 2009 12:02 PM

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