Hell Hath Frozen Over. David Lereah Proclaims Housing not Hitting Bottom.
“It’s Going to Get Worse
Economist David Lereah was once the housing market’s biggest cheerleader. Now he says the bust isn’t near over, and home prices still have a long way to fall.”
“We’re not at the bottom,” he says. “[People] want it to be near the bottom, but we’re not there yet. The leading indicators are still very bad. Pending home sales are still in bad shape. Mortgage applications are low … There’s still supply out there in abundance … This thing is going to get worse before it gets better.”
OMG!!!!!!!!!! David Lereah has become bearish on Housing!!!!!!! GET LONG???? ASAP!!
Daivd Lereah was one of the most adamant supporters of the housing boom. In fact, this idea that money was “stuffed in your mattress” is precisely the reason we have a negative savings rate and there is no buffer to support the continuing collapse in housing prices. But the tune is now changing as highlighted in this big story in Newsweek titled:
Quotes "There's a speculative element in home buying now." —Lereah, Reuters May 24, 2005
"Real estate is still a great investment opportunity for households. Price appreciation will continue. It may not be at 20%. It may be at 10% to 15%, or may even go down to 5%. The returns are still going to be good, but not as great as they have been. Real estate should still be extremely competitive [in terms of] return on investment." —Lereah, SmartMoney.com interview, August 12, 2005
"If you paid your mortgage off, it means you probably did not manage your funds efficiently over the years. It's as if you had 500,000 dollar bills stuffed in your mattress." —Lereah, LATimes, August 28, 2005
"We're going to drop significantly, but it's not a balloon bursting." —Lereah, PBS NewsHour appearance, November 29, 2005
"With sales stabilizing, we should go back to positive price growth early next year" —Lereah, NAR August 2006 existing home sales press release, September 25, 2006 Publications
His book Are You Missing the Real Estate Boom?: Why Home Values and Other Real Estate Investments Will Climb Through The End of The Decade—And How to Profit From Them was published in February 2005. One year later in February 2006, Lereah retitled his book
Why the Real Estate Boom Will Not Bust—And How You Can Profit from It. Lereah's previous book
The Rules for Growing Rich: Making Money in the New Information Economy touting investment in technology company equities was published in June 2000 at the onset of the collapse of the dot-com bubble.
David Lereah Watch
Is David Lereah going to Hell? No Housing Bottom: Hell Hath Frozen Over. David Lereah Proclaims Housing not Hitting Bottom.