MarketWatch Slams David Lereah

MarketWatch slams David Lereah in an article titled 'Realtors' economist stayed sunny all year. In the most excellent article, it is written

There are two universal truths at the National Association of Realtors: 1) It's always a good time to buy or sell a home; and 2) We've seen the worst of the housing market correction.

That is the gospel at the the National Association of Realtors which is desperately trying to keep home sales and home prices high. Lereah is sounding even more pathetic then normal. He recently said:

"With fingers and toes crossed, it appears that we have hit bottom in the existing home market"

Despite Lereah's convoluted body the market will continue to decline in the coming year. David Lereah has lost credibility, it is refreshing to see the mainstream media criticize David 'paid shill' Lereah.

Lereah: 'No Bubble Burst in 2006'

David Lereah claims that "There was no bubble burst in 2006," Lereah said. "We know the speculative buyers left in 2006," he said.

Prices have adjusted in most metro areas, Lereah said. "It's becoming a buyers' market.

Lereah on the 2007 Housing Market

The NAR released this information about the housing market in 2007. "David Lereah, NAR’s chief economist, said annual totals for existing-home sales will be fairly comparable between 2006 and 2007." He said:

“We have to keep in mind that we were still in boom conditions during the first quarter of 2006 with a high sales volume and double-digit price appreciation,” he said. “We are starting 2007 from a relatively low point, so even with a gradual improvement in sales it’ll be pretty much of a wash in terms of annual totals. The good news is that the steady improvement in sales will support price appreciation moving forward.”

These economic predictions were released by the NAR, Mr. Lereah is their chief economist so he is responsible for these numbers:

Existing-home sales for 2006 are expected to come in at 6.50 million, the third highest on record, with a total of 6.42 million seen in 2007. New-home sales in 2006 should tally 1.06 million, the fourth highest on record, with 957,000 projected this year.

Total housing starts for 2006 are likely to be 1.81 million units, with 1.51 million forecast in 2007, which would be the lowest level in a decade. Builders are pulling back on new construction to support prices of remaining inventory.

The 30-year fixed-rate mortgage will probably rise to 6.7 percent by the fourth quarter of 2007. Last week, Freddie Mac reported the 30-year fixed rate at 6.18 percent – far below earlier consensus forecasts. “The current interest rate environment and housing inventory levels present a window of opportunity for potential buyers,” Lereah said.

The national median existing-home price for all of 2006 is expected to rise 1.1 percent to $222,100, and then gain 1.5 percent this year to $225,300. The median new-home price, after rising only 0.3 percent to $241,600 in 2006, is projected to grow 3.0 percent in 2007 to $248,900.

These predictions are too optomistic and reflects the cheerleading by the segments of the housing industrial complex.