Regular readers to this blog will know who Dr. David Lereah is. If you don’t, he is the biggest real estate cheerleader there ever was. David is a Senior Vice President and Chief Economist for the National Association of Realtors (NAR).
Dr. Dave has been one of the biggest anti-bubble spokesmen on the scene, which is expected given the organization he is a spokesman for. However, it seems that Dave and the NAR are quickly changing their story. Why you ask? If there is no bubble why would they change their story so quickly? Well, it’s because they always knew there was a bubble, but they did everything they could to keep the party going. Now that it’s obvious the real estate market is going to take a significant downturn in the upcoming year, they are covering their backsides.
Lereah made some comments a few days ago, that caused many people to double take. In fact, I needed to read the article two or three times, I just didn’t believe these words came out of Lereah’s mouth in this article:
Housing Boom Fading, Leading Real Estate Economist Says
“The boom is showing some signs of tiring,” David Lereah, chief economist with the National Association of Realtors, said Friday.
“We are projecting a significant drop in the price appreciation pace,” Lereah said.
But even though the velocity of the housing market will subside, “we are looking for a soft landing,” he told real estate agents from across the country who are meeting in San Francisco.
“Some markets are more susceptible to interest rate risks and shock,” he said. “I cannot guarantee that there will be no hard landings.”
When David Lereah, Chief Economist and Head Cheerleader for the NAR says there is a possibility of a hard landing, run, do not walk, to the nearest exit. This is no time to be thinking about, or actually buying a home. To all the prospective buyers on the market. Sit tight, your time is coming.
Caveat Emptor!
Grim