A big hat tip to "Tobby" for letting us in on the National Association of Realtors [NAR] latest propaganda, I mean "promotional campaign." You can see all of the full-size print ads here, but I thought I’d share some of my personal favorites: [Text will be displayed below the ads [blue comments are mine] – in deference to Doomers with older computers, I never have images wider than 600 pixels.]
You might be wondering if buying a home right now is a smart financial decision. [No, I wasn’t] The fact is, homeownership is key to building longterm wealth, no matter when someone buys. [Tell that to all the poor souls who bought at the top of the market a couple of years ago and are now facing foreclosure.] Studies show that, over time, most homeowners will steadily build equity. [That’s no guarantee that you will, however.] For example, during the past three decades, home values have increased on average more than 6% per year.
Of course, owning a home is much more than a way to gain a financial edge. It’s also where you raise a family and create lifelong memorites. [Renters only get short term memories, I guess.] Work with a REALTOR, a member of the National Association of REALTORS, they can show you options in your area that best fit your situation. [Although there are those agents who will show you properties that will maximize their profits, but not necessarily yours.]
I beg to differ with the NAR- like most investments, timing is everything. Let’s look at a graph from economist Robert Shiller’s book "Irrational Exuberance" and look at that "average 6%/year appreciation":
All of a sudden that "average of more than 6% appreciation over the last three decades" looks like cherry picking, doesn’t it?
Research proves that for most people who own homes for longer periods of time will build equity. [That’s what happens when you pay off a mortgage] For example, during the past three decades, home values have increased an average of more than 6.0% per year. [This isn’t good statistics, but you have to give them points for "Fun with Numbers"]
Of course, a home is much more than a way to build long-term wealth, it’s also where you enjoy your lifestyle and create memories with your loved ones. [I guess those of us who live in rentals can’t enjoy lifestyles or create memories. Renting causes amnesia?] Work with a REALTOR, a member of the National Association of REALTORS, they can show you options in your area that best fit your situation. If you’ve been waiting for the right time to buy a home, you should know the facts about homeownership. To learn more, visit HousingMarketfacts.com.
For that whole "home doubling every 10 years" thing, see above appreciation chart. Oh, and if you prefer your ads in Spanish, the NAR has the same ad with a more Hispanic looking agent photoshopped in:
If you’re thinking about selling your home, but you’re unsure of the timing, there are some things your REALTOR wants you to know. Today’s current real estate market conditions– low rates and an abundant inventory– are offering buyers once-in-a-lifetime opportunities. [Why do you care about buyers "once-in-a-lifetime opportunites"- you’re the seller.] Which means there will be more buyers in the market looking for a home like yours. [Excuse me, but "abundant inventory" is a result of fewer buyers, not more.]
Question: If realtors knew the market would change, how come their chief economists didn’t know?
If there’s some subliminal message in here that’s supposed to put you in the mood to buy, it’s not working on me. [The overt message isn’t working either.] Go ahead, read through the materials on the Realtor site- but make sure that you’re not eating, or someone is around who knows the Heimlich Maneuver. You are liable to find the materials a bit much.