Loose Lips Sink Real Estate Markets

Posted by Jonathan J. Miller -Tuesday, February 7, 2006, 12:01 AM
1 Comment

The housing market is now being characterized as a super tanker or large ship.

I was humored by the Lereah changes metaphor – Real estate is now a ship, not a balloon [Northern NJ RE Bubble Blog] post which takes a quote from the NAR Chief Economist [Reuters] who says:

Changes in the overall direction of the housing market are akin to a large ship making course corrections — it takes some time for the driving factors to materialize as a change in the sales level.

This comes after his recent pronouncement that we are in a housing expansion [Matrix]. However, that description did not gain traction, and in fact did more damage to NAR credibility trying to be the lighthouse in the dark and stormy night [Matrix]. [Sorry about that]

Actually I am not sure that the ship analogy is accurate. I don’t think that housing markets always take long periods of time to change as the ship comparison would suggest. However, I think it does take a long time for market participants to accept change, especially when the market has been largely unchanged for several years.

One Response to “Loose Lips Sink Real Estate Markets”

1. benjamin says:

   February 7, 2006 at 12:25 PM

   I’m amazed with the Full Court Press that the Media , Press, Banks, Real Estate Agents, NAR, and others with a Highly Vested Interests Declare ALL IS WELL in Housing Markets and to silence ANY percieved descent. Anyone that Asks, Writes or merely Comments on the Real Estate Practices, Bubble, Housing Gluts or problems is labeled as an Economic HERETIC and TRAITOR! In Madison, Wisconsin, the overvalued Homes , over supply, increasing time on sales market as well as RE Agents Losing 20% of the market to For Sale By Owner FSBO’s was briefly in the News early this Year. After a Brief Comment by a Leading RE Firm to the Media that the Market IS FINE and the Loss of 20% to FSBO’s means Nothing to US …Further Questions and Comments in Madison Media and Press as well as Statewide… Well, the Silence HAS become… DEAFENING ! If NEXT Bigger FOOL DOESN’T HEAR about a BUBBLE… He CAN’T PANIC!