We knew there was something odd about the language used by the NAR and its chief economist Larry Yun this morning.
To refresh, new home sales posted an unexpected dip, and Yun said the following:
NAR: “Home sales retrenched from a very strong improvement in July but continue to be much higher than before the stimulus. The first-time buyer tax credit is having the intended impact of bringing buyers into the market, allowing them to take advantage of very favourable affordability conditions,” he said. “Some of the give-back in closed sales appears to result from rising numbers of contracts entering the system, with some fallouts and a backlog contributing to a longer closing process, but the decline demonstrates we can’t take a housing rebound for granted.”
Some comments from NYC housing appraiser Jonathan Miller helped us realise what was so strange.
See, those familiar with the NAR’s ra-ra releases will recognise that lines like “we can’t take a housing rebound for granted” are not usually found in their announcements. But this release wasn’t aimed at your typical prospective homebuyer. This was aimed at the government, and the whole idea is to convince the government to expand subsidies for homes. If things are getting better, then no subsidy.
So politicians, you wouldn’t want home values to collapse in your district, now would you…