From Jim Quinn of The Burning Platform:
"The continuing shortages of housing inventory are driving the price gains. There is no evidence of bubbles popping." – David Lereah, NAR mouthpiece/economist – August 2005
"The steady improvement in home sales will support price appreciation despite all the wild projections by academics, Wall Street analysts, and others in the media." – David Lereah, NAR mouthpiece/economist – January 10, 2007
"Buyer traffic is continuing to pick up, while seller traffic is holding steady. In fact, buyer traffic is 40 percent above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly. We've transitioned into a seller's market in much of the country. We expect a seasonal rise of inventory this spring, but it may be insufficient to avoid more frequent incidences of multiple bidding and faster-than-normal price growth." – Lawrence Yun – NAR mouthpiece/economist – February 21, 2013
I really need to stop being so pessimistic. I'm getting richer by the day. My home value is rising at a rate of 1% per month according to the National Association of Realtors. At that rate, my house will be worth $1 million in less than 10 years. My underwater condo (figuratively – not literally) in Wildwood will resurface and make me rich beyond my wildest dreams.
Larry Yun, the brilliant economic genius employed by the upstanding and truth telling NAR, reported that median home prices soared by 12.3% in January (down 3.7% from December) over the prior year and there is virtually no inventory left to sell – with a mere 1.75 million homes in inventory – the lowest level since 1999. The median sales price of $173,600 is up "dramatically" from last year's $154,500 level. I'm sure the NAR meant to mention that home prices are still down 25% from the 2005 high of $230,000.
Every mainstream media newspaper, magazine, and news channel is telling me the "strong" housing recovery is propelling the economy and creating millions of new jobs. Keynesian economists, Wall Street bankers, government apparatchiks, and housing trade organizations are all in agreement that the wealth effect from rising home prices will be the jumpstart our economy needs to get back to the glory days of 2005.
Who am I to argue with such honorable men with degrees from Ivy League schools and a track record of unquestioned accuracy as we can see in the chart below?
More on housing: