Home Sales Pimp Larry Yun Caught In A Blatant Lie

Both new home sales and pending home sales for October missed Wall Street estimates and were overall disappointing.  Pending home sales actually dropped.  I’ll have more on this either tonight or tomorrow.

But I had to publicize the fact that NAR Chief Economist, Larry Yun, has lied about the data. With regard to an attempt to put positive “spin” on a bad pending home sales report, Yun said this:   “…buyers entering the market this autumn are being lured by the increase in homes for sale and less competition from investors paying cash.”

Yun is trying to explain that less buyers are paying cash and that is stimulating mortgage-financed sales.  Nothwithstanding the FACT that mortgage purchase applications are in a tailspin, here’s the cash vs. mortgage data for October’s existing home sales – direct from Yun’s report released last week:   “All-cash sales were 27 percent of transactions in October, up from 24 percent in September…Individual investors, who account for many cash sales, purchased 15 percent of homes in October, up from 14 percent last month.”  Yun’s spin on the negative pending home sales report is therefore a lie.

As I detailed in this article – LINK – the all-cash flipper purchases spiked up in October.  The 1st time buyer who requires a mortgage stayed constant, which means the move-up buyer segment and the distressed buy-to-rent-to-sell segment dropped.

Larry, Sir Walter Scott has a comment for you:   “Oh what a tangled web weave, when first we practice to deceive.”

 

7 thoughts on “Home Sales Pimp Larry Yun Caught In A Blatant Lie

  1. I get that home purchases are being done with cash and
    flippers and other assorted investment groups account for
    the majority of the sales. I have attached an article from
    Zero Hedge that points out that inflation has hit the housing
    market big time. Do you think that maybe holding property
    along with other hard assets is going to accelerate ?
    That hard asset trend started about two years ago and
    now maybe more stock investors(read funds) are maybe
    increasing their holdings in order to rent to those who either
    don’t want to buy or cannot buy houses.

    http://www.zerohedge.com/news/2014-11-26/something-wrong-chart

    1. NO. The value of property is based on the amount of debt that someone can take out to buy it. It’s FAKE value.
      Most property in this country is leveraged or leveraged x2.

      IF you want land as an inflation hedge, buy debt-free fertile farmland. But that has been bid to the moon too.

      When this collapses, your house will be worth X times .1 or .2.

      Just look at the amount of vacant homes in this country. Just using lame Census Bureau numbers 14% of the homes in this country are vacant:
      http://www.trulia.com/trends/2014/09/are-we-building-too-many-single-family-homes/

  2. it’s clear they make it any price they want it to be, present or future!

    BTW, the part about Knight is a complete fairy tale only believed by morons–it was a clear assassination, rather like Bear Stearns, but smaller & later. they had THE book on every nasdaq order & could see the wholemarket literally, before any customers could get their order executed.

    http://www.marketoracle.co.uk/Article48378.html

    There was speculation that the price spike which came while the COMEX was closed for 30 minutes was due to a series of charting errors or misprints, a bad price feed or a computer glitch. Another example of how technology is a great enabler but can also be a great disabler.

  3. Before there was Larry Yun the NAR’s chief E-CON-omist was David Lie-reah. Anyone out there buy Davy boys book “Why the Real Estate Boom Will Not Bust and How You Can Profit From it: How to build Wealth in Today’s Expanding Real Estate market” -I’m quite sure that this invaluable book makes a great paperweight or doorstop.

  4. The frequency of these housing lies would be shocking were we not already saturated in the same way the markets are virtually fully leveraged. Enough electronic, marginal debt and assets already, lets sit back and watch their overwound machines careen around the room.
    Well, well, a preview of a meltdown…

    http://www.sharelynx.com/newsblog/index.php?post/2014/11/25/Gold-Algos-Run-Wild
    Gold Algos Run Wild
    By Nick Laird on Tuesday, November 25 2014, 23:29
    Excerpts:

    “Goldbugs hearts were racing today as gold roared up whilst Comex was closed for 1/2 hour. The price started leaping once it got over 1200 & topped out at the price of $1466.38 – a 22% rise of $270…

    What must be asked is what was happening to these live quotes that gold rose almost $270 on multiple datafeeds? Who was doing the watching & who did the monitoring & then the correction? Someone in control was watching these live feeds & reacting to them? What was happening to the quote stacks – who was buying/selling – did it really happen?

    Surely there must be bids & sells for the price to rise thus & hence if the price is reverted then someone is covering….

    One must also wonder – was this a test run?”

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