Thursday, April 17, 2008
In searching for the late-2006 data required for the last post, the ad campaign by the NAR (National Association of Realtors) from that period popped up - it's worth having another look at almost a year and a half later.
Recall that the following full-page ad appeared on at least two consecutive Sundays in major newspapers - this probably influenced more than a few people on their home purchase decisions though the logic of it being a great time to buy OR sell continues to escape me.
As it turns out, notwithstanding the encouragement from former Fed chairman Alan Greenspan, late-2006 was one of the absolute worst times to buy a house. If you bought a house almost anywhere in California, you've probably seen your new place lose $100,000 in value - in some areas, much more.
Should there be any wonder why realtors are getting sued these days?
Shown above is the original version of the ad from early in November of 2006. The next revision of the ad conveniently dropped the "4.3 percent increase in pending home sales" line after pending home sales fell the next month.
Pending home sales are now down more than 20 percent from that period.
That was some pretty awful advice for potential homebuyers.