Yunnie says it’s ‘unhealthy’, but sellers would disagree. From MND:
http://www.mortgagenewsdaily.com/05122014_nar_metro_home_sales.asp
Lawrence Yun, NAR chief economist, said the price trend is favorable. “The cooling rate of price growth is needed to preserve favorable housing affordability conditions in the future, but we still need more new-home construction to fully alleviate the inventory shortages in much of the country,” he said. “Limited inventory is creating unsustainable and unhealthy price growth in some large markets, notably on the West Coast.”
The five most expensive housing markets in the first quarter were the San Jose metro area, where the median existing single-family price was $808,000; San Francisco, $679,800; Honolulu, $672,300; Anaheim-Santa Ana, $669,800; and San Diego, where the median price was $483,000.
Is he allowed to say that?
Only if he is a doctor?
What’s so unhealthy about it? Classic supply and demand. When more inventory hits price will adjust downward. Question is why aren’t there more sellers?
In San Jose and San Francisco we too have very tight inventory. Over in Sac we do see much more inventory come out, which is what you expect when price shot up.
I think Yunnie is so paranoid about being labeled a cheerleading shill like his predecessor David Lereah that he finds whatever excuse he can to moderate his response.
There aren’t many pure supply-and-demand markets any more, and if realtors were competent in conducting the bidding wars properly we’d see even higher prices.
Why aren’t there more sellers? I think the potential move-up-or-downers can’t qualify for both houses so they must sell first. But they are afraid to risk being shutout or don’t see anything for sale that makes it worth it. They refinanced into an ultra low rate and stopped reading those stupid blogs.
Jim, did you see Glenn’s piece declaring war on Zillow and Trulia?
http://blog.redfin.com/blog/2014/05/real-estate-brokers-can-coexist-with-national-portals-by-changing-the-way-we-share-data.html#.U3FhwPldV8E
Regular agents already don’t trust his ‘rabble rousing’ ways. If he tries to push having ZTR put his website link on listings, then he should do the same on our listings on Redfin.
I re-read it and it sounds like he will join in and provide links off Redfin to listing brokers.
It will probably come to single agency eventually. That’s what he is talking about – cutting out the buyer agents, which is a slippery slope for many reasons.
But the industry will go that route out of desperation and ignorance.
Example: NAR doesn’t have a position on pocket listings. Nice – stand by idly while integrity is drained and buyer agents get screwed.
I agree we may eventually go single agent. There is widespread belief the buyer agent doesn’t add much value to the transaction anyway.
Redfin has the best technology among all real estate companies, including the portals and certainly miles ahead of the brokerages. But more than a decade in they are still small player in all the markets they are in. I think the biggest problem is customers don’t have ways to discover the good agents. Zillow and Trulia just showcase agents who pay the most.