Monday, March 20, 2006

Balloon or Bubble? No matter, it's all hot air.

Today the Boston Globe reported a priceless gem of a quote from David Lereah, chief economist for the National Association of Realtors, who was speaking at the New England Realtors Conference in downtown Boston:

New England "will have negative sales like the rest of the country" in 2006, "but prices will still go up," Lereah said. "There's no bubble bursting," he said. "You can put air in the bubble, and it inflates and now the air is going out of the balloon -- it is not bursting."

I've read this quote a dozen times, and I'm still stunned by its ridiculousness. Does it matter if the balloon is mylar or latex? Filled with air, or helium? Perhaps it is filled with hydrogen like the Hindenburg - we know how well that worked out.

Perhaps the funniest part of the Globe story was the lead in:

Two of the nation's top economists said today...

My condolences to economists everywhere.


willydog66 said...

Just shows there is only one lobby group that can spin better than the MAR - their big sister - NAR. lol. Where did these guys get their economics degrees from?

Are these guys for real or what? What morons. China, Trade Deficit, energy prices? All spells inflation to me. Wait till the fed moves, and the scuttlebut will be how much more the fed will move. Also, the next wave of miserable housing numbers come out Thursday, should be very interesting to see how many people are still predicting a 6% increase for '06 - especially when things have already dropped year over year.

Waiting for the flip flop. lol

MA Market Watcher said...

Prices never go down. No, no you don't understand me, I mean median prices. Year over year. Across the USA.

Lucky us in MA with negative Jan 05 to Jan 06... These guys should be classified as politicians (and I'm being nice!) said... integrates how much homes SOLD for in Boston MA as well as nationwide using the google mapping technology. If you don't see data for your area simply email with your zipcode and or address and they'll update the site and email you within a few days.