Real estate agents debate local statistics
Real estate agents debate local statistics:
Overall, I feel that Realtors lobby to protect their vested interests. However, this article, from Press of Atlantic City includes an interesting quote from Bruce E. Breunig. I commend him for his insight and honesty.
"Bruce E. Breunig Jr., broker at Century 21 Alliance in Margate, admitted that 'we Realtors remain part of the problem. We blame the media for fueling the downturn and try to counterbalance it with our own positive spin.'
Breunig had a theory as to why the NAR survey shows rising prices locally that real estate agents aren't seeing.
The Realtor survey tracks median home prices, the price at which half of all sales were for more, half for less.
The subprime mortgage crisis and subsequent credit crunch have made it far more difficult for low-end buyers to get a mortgage, he said, which has reduced the number of low-end sales. The homes that sell are then disproportionately from the upper half of the market, artificially raising the median price.
The other survey with local home prices, from the Office of Federal Housing Enterprise Oversight, avoids this kind of distortion by tracking price changes at particular properties.
For the fourth quarter of 2007, the OFHEO survey said Atlantic City area prices fell 1 percent, even as the Realtor survey showed them rising 10.7 percent in the same period."
Overall, I feel that Realtors lobby to protect their vested interests. However, this article, from Press of Atlantic City includes an interesting quote from Bruce E. Breunig. I commend him for his insight and honesty.
"Bruce E. Breunig Jr., broker at Century 21 Alliance in Margate, admitted that 'we Realtors remain part of the problem. We blame the media for fueling the downturn and try to counterbalance it with our own positive spin.'
Breunig had a theory as to why the NAR survey shows rising prices locally that real estate agents aren't seeing.
The Realtor survey tracks median home prices, the price at which half of all sales were for more, half for less.
The subprime mortgage crisis and subsequent credit crunch have made it far more difficult for low-end buyers to get a mortgage, he said, which has reduced the number of low-end sales. The homes that sell are then disproportionately from the upper half of the market, artificially raising the median price.
The other survey with local home prices, from the Office of Federal Housing Enterprise Oversight, avoids this kind of distortion by tracking price changes at particular properties.
For the fourth quarter of 2007, the OFHEO survey said Atlantic City area prices fell 1 percent, even as the Realtor survey showed them rising 10.7 percent in the same period."
posted by Paul at 5/28/2008 08:22:00 AM
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