Affordability Index.... Still Laughing....
I was going to post the latest CAR Affordability index and some thoughts on their "new formula" but Patrick.net has done a better job of it.
Lies, Damned Lies, and the C.A.R.
"August 17th: CAR (California Association of Realt-whores) announces it’s “new-and-improved” Housing Affordability Index (which they had ceased reporting in December, 2005 after it hit an historic low of 14% statewide)."
"Tragically, even after torturing the numbers thusly, CAR was only able to produce an affordability figure of 23%. This is just NOT acceptable! Clearly, they ought to keep on torturing those numbers until they confess 100%!"
Read the rest and discuss....
posted by Athena @ 12:40 PM
11 Comments:
I really hate those damned realtors...they are propaganda Nazis as bad as any totalitarian state.
I think it's inevitable with their closed Realtor/MLS system. They're strangling the market for their own gains--for now. The current bubble really exposed the market inequalities of their closed system.
From what I heard the DOJ is dialing their number...
I loved this comment from Ben's place on the C.A.R.'s new propaganda...
Comment by Trojan Horse
2006-08-18 14:41:06
This one has got me boiling mad. The whole point of an affordability index is to compare price/affordability from different points in time. YOU DAMN IDIOTS, if you change the index calculation you don’t make houses more affordable! You simply make the index completely useless as it can no longer be compared with anything else.
Sort of like what the fed does with its core inflation measurement.
Marinite said... "I really hate those damned realtors...they are propaganda Nazis as bad as any totalitarian state."
Stop the presses! I may have stumbled across an honest Realtor®!
Jimmy Castro's Real Estate column has long been a favorite of mine. He freely admits that real estate prices are falling in Sacramento as inventory continues to stack up. Jimmy seems to tell it like it is; straight from the shoulder with no punches pulled. For example:
Market value is NOT:
· The assessed value for tax purposes
· How much you paid for your home
· How much you owe for your home
· How much you put into your home, monetarily and / or emotionally
· How much cash you need from your home
· The sales price of your neighbor's home
· The appraised value of your home when you refinanced last year.....
Market value for our purposes is: "the price a home will command from a rational purchaser under normal conditions." It is basic supply and demand economics. As home inventories increase, home prices will fall. If home inventories decrease, home prices will climb."
http://realtytimes.com/rtmcrcond/
California~Sacramento~jimmycastro
woohoo... Jimmy Castro sounds like a smart cookie.
nice find. we should probably give him his own post. Let me know if you find any more needles in the haystack... err...I mean realtors with good advice.
Lots of talk in the Boulangerie this morning of the drop in housing prices. Haven't heard any more of this, not here, we're different hooey.
on a credibility and respectability index the CAR and NAR rank somewhere between NAMBLA and Don Rumsfeld.dishonest stupidity on this scale still surprises me,despite einsteins comment that human stupidity was the second infinity.CAR is still paying an economist named eyler to tour mls breakfast groups to explain that prices might decline slightly inland,but not within 50 miles of the coast.he passed through santa rosa last week,and was warmly recieved.this new "index" is obscene
MV we will know the job is done when you are at the boulangerie and you hear them cussing us out by name. ;-D
then I will have to leave town, already I am careful with what I say. I know some wonder why I know so much about falling prices.
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