NAR in the News

The Truth About Statistics

Fri, 22 Jun 2007 16:56:18 -0500

“You can find a statistic to prove anything you want to prove.”

Ever heard that before? Hope you didn’t believe it, because the fact is that surveys and market data are incredibly valuable tools that people use to make business decisions every day. Yet, we know that people cook up studies and surveys every day to support their point of view.

The problem isn’t statistics. The problem is BAD statistics.

Internet Realty Realities

Thu, 14 Jun 2007 11:56:39 -0500

"If you're a traditional Realtor®, then you must be against the Internet," a very good friend said to me the other day. His words caused me to pause and to consider the damage that is being done to our profession by the recent 60 Minutes segment and other stories that have created the impression that there are two kinds of brokerages today, those that use the Internet and those that don't.

First Point. The only reason that there is a real estate industry on the Internet in the first place is that listings are online--more than 4 million of them at any given moment. This did not happen by magic. It happened because the hundreds of thousands of brokers who own those listings signed up home sellers, put a listing together, and agreed to let their competitors use their listing to attract business. Then they built state-of-the art Web sites to do the same.

Foresight, cooperation, innovation, risk-that's what "traditional Realtors®" had to have to make it possible for today's "untraditional" brokers to get into business. Nowhere else in the world can you peruse so much property in your bedroom slippers. Indeed, what other industry allows one member to use another's inventory to attract business?

News Summary for January 11

Thu, 11 Jan 2007 14:14:12 -0500

At a news conference yesterday, NAR President Pat Vredevoogd Combs highlighted the current state of the real estate market and discussed how today’s market is filled with challenges for buyers and sellers. She also previewed NAR’s $40 million public awareness advertising campaign, “Every market’s different, call a Realtor today.” Reuters, MarketWatch and Dow Jones wrote about the launch of the new campaign.

CFA Lays an Egg

Wed, 13 Dec 2006 12:51:43 -0500

December 13, 2006 -- This morning’s news conference on discount brokerage in the real estate industry drew only three journalists, one of whom works for a tiny Internet news service. Five brokers -- three of whom are REALTORS® -- participated in the event to complain about their treatment by full-service firms.

Because some comments misrepresented NAR's position, we issued the following statement:

“As everyone who has bought or sold a home knows, real estate brokerage is fiercely competitive. Consumers can choose from more than 1.3 million REALTORS® today, including those who work for discount, limited service, or minimal service brokerages. In fact, about one out of every eight members of NAR work for these kinds of firms.

“NAR’s policies foster the interests of all REALTORS® and real estate consumers. We support all business models and favor none.”

News Summary for November 28

Tue, 28 Nov 2006 14:54:37 -0500

Leading news outlets, including MarketWatch and ABC News, quoted chief economist David Lereah and NAR President Pat Vredevoogd Combs on October’s existing-home sales, which showed that sales of existing homes rose slightly in October, continuing the transition to a more normal market. "After a period of price adjustment, we'll see more confidence in the market and a lift to home sales should be apparent in the first quarter of 2007," said Lereah.

The New Orleans Times-Picayune wrote a story about the city’s ability to successfully host the recent REALTORS® Conference & Expo, November 10-13, which brought more than 25,000 Realtors and guests to the city.

Realtor® is to Real Estate Agent as Mercedes® is to Car

Fri, 13 Oct 2006 15:47:21 -0500

Recently, some journalists reported results of a Harris poll in which real estate agents were perceived as one of the least prestigious occupations in a list of 23 professions. Too bad they didn’t include Realtors® on the list.

News Summary for October 13

Fri, 13 Oct 2006 12:39:10 -0500

The Examiner and the New York Times (free registration required) ran articles on the most recent housing and economic forecast. The Examiner quoted David Lereah saying, “Many potential home buyers who have been taking a wait-and-see attitude or taking their time and being methodical in the search process are being enticed by lower home prices…Given a positive economic backdrop of lower interest rates and job creation, we expect sales activity to pick up early next year.” BankRate.com quoted Pat Vredevoogd Combs on becoming an agent.

News Summary for October 11

Wed, 11 Oct 2006 16:18:44 -0500

The State Journal-Register (IL) wrote about the Illinois Association of Realtors’ recent Habitat for Humanity home build. The build was part of the Realtor-Habitat Partnership for Gulf Coast Recovery program, in which NAR and each of the nation’s state and territorial Realtor associations will build 54 Habitat homes for Gulf Coast families. BusinessWeek and Newsweek wrote about the cooling housing market.

Million Dollar Listing

Tue, 03 Oct 2006 10:33:45 -0500

By now, many visitors to this blog have likely seen or at least heard of the latest real estate “reality” show to hit the airwaves – “Million Dollar Listing.” But the sensational story lines and scenarios in this show are anything but an accurate depiction of reality.

News Summary for September 28

Thu, 28 Sep 2006 16:38:57 -0500

David Lereah appeared on CNN Paula Zahn Now commenting on home prices. “The housing market went through a very big boom. We needed a correction. Prices got too high. Now we need prices to come down to bring people back into the buying marketplace,” said Lereah. Tom Stevens testified on Wednesday before the House Government Reform Subcommittee on Government Management, Finance and Accountability on the OCC’s decision in December 2005 to grant three national banks the ability to enter into speculative real estate development transactions. The Wall Street Journal wrote about the hearing and quoted Tom Stevens on his concerns over the expansion of bank powers. Stevens said, "What we have stated and what we still firmly believe is that the OCC's actions set in motion a process that will result in the regulator authorizing national banks to engage in real-estate brokerage, which is currently prohibited."

News Summary for September 26

Tue, 26 Sep 2006 17:01:32 -0500

Coverage of August’s existing-home sales is dominating the news this week. David Lereah appeared on NBC Nightly News commenting on the reported drop in home prices. “The sellers market has turned into a buyers market. That’s why prices have come down over the last 12 months. And that is why they will continue to come down over the next six months,” stated Lereah. Top news media including the New York Times, USA Today and CNNMoney.com also quoted David Lereah in stories on home sales and prices.

News Summary for September 22

Fri, 22 Sep 2006 10:03:10 -0500

USA Today wrote a story on how speculative investors, who purchased homes with the intent of flipping, are now likely to get burned. A Forbes.com article discusses how sellers aren't just lowering their home prices as sales continue to slow, they are also offering incentives to entice buyers.

News Summary for September 19

Tue, 19 Sep 2006 16:59:34 -0500

A Letter to the Editor from Tom Stevens appeared in the New York Times. The letter, “A Real Estate Agent’s Role,” (free registration required) discussed the Internet's role in real estate. “Buying a home is not like buying a book, a CD or airline ticket. The Internet’s role in residential real estate is much more like WebMD than Amazon or eBay. It empowers and informs the consumer — which is good for everyone — but it doesn’t replace the need for a doctor’s professional services,” stated Stevens. He continued, “Real estate agents provide a valuable service enabling sellers to get the best price for their homes and buyers to find the best home at the lowest price.”

The letter was in response to the article, "The Last Stand of the 6-Percenters?” which ran in the New York Times earlier this month.

The 16 Percent Solution

Fri, 15 Sep 2006 15:30:56 -0500

Some of the recent comments on this blog question the NAR research that shows homes sold with the help of a real estate professional sell for 16 percent more than those sold without representation. This statistic comes from the 2005 NAR Profile of Home Buyers and Sellers. The report is for sale to anyone who wants it.

This finding was consistent across all price levels – the value of homes sold by owners was similar to the value of homes sold with the help of an agent. But what’s behind the data? A number of factors are at play:

News Summary for September 14

Thu, 14 Sep 2006 15:42:20 -0500

Top news outlets Reuters and SmartMoney.com covered Tom Stevens' testimony before the Senate Banking Committee on the housing market and economy. “After five years of outstanding growth, the housing market is undergoing a period of adjustment and becoming more and more of a balanced market between buyers and sellers,” said Stevens. He continued, “Contrary to many reports, there is not a 'national housing bubble.' All real estate is local. For example, the housing market in California is extremely different from Oklahoma.”

Realty Times wrote an article on the transitioning real estate market entitled “Why NAR Expects Home Sales to Lift from Temporary Dip” that quotes Tom Stevens and David Lereah. “This is a normal pattern during a market correction, but home prices should return to positive territory within a few months and annual appreciation will be slower than historic norms,” stated Lereah.