Is NAR Counter-productive?

A friend of mine (hat tip to Luke) e-mailed me this blog post and asked my opinion.  Basically, the blogger argued that the National Association of Realtors (NAR) consistenly optimistic take on the housing market is counter-productive, in that it makes it more difficult for realtors to get sellers to set a reasonable listing price for their home.  It's an interesting idea, so I thought I would put in my two-cents :

1. I don't think that NAR's statements have created an overly optimistic market.  Many of the sellers I have talked to recognize that we are still in a difficult market, and that it is going to take awhile to recover.  Sure, there are a few that believe their home is worth more than it probably is, but I think this has as much to do with the rapid increase in prices during the housing boom that conditioned people to think a certain way about home values.


2. As the other blogger states, NAR is an advocacy group for realtors, so it should not come as a surprise that they tend to emphasize positive news in the real estate market.  Consumers should consider where information is coming from when making such an important decision as buying/selling a home.

If you are considering buying or selling a home, I recommend looking at what NAR is saying about the market, but also looking at the Wall Street Journal or the NY Times, as well as the Columbian or Oregonian to get a couple different perspectives.  If you have specific questions, call me.  For some people, now is not the right time to make a move.  If I think you should wait a year or two (or five), I will tell you.  I would rather be honest with you and earn your trust (and hopefully your business whenever the time is right), then try and talk you into a bad decision.