{"id":8871,"date":"2009-06-10T23:07:00","date_gmt":"2009-06-11T06:07:00","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=8871"},"modified":"2009-06-11T00:15:41","modified_gmt":"2009-06-11T07:15:41","slug":"what-if-the-real-estate-industry-didnt-control-the-real-estate-market","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8871\/what-if-the-real-estate-industry-didnt-control-the-real-estate-market\/","title":{"rendered":"What If The Real Estate INDUSTRY Didn&#8217;t Control The Real Estate Market?"},"content":{"rendered":"<p>I have the heart of a trader.\u00a0 If you read <a title=\"mortgage rates report\" href=\"http:\/\/www.mortgageratesreport.com\">Mortgage Rates Report<\/a>, you know that I&#8217;m fascinated with the forces that make markets move up, down or not at all.\u00a0 One of the things I&#8217;ve noticed, since I started writing on Bloodhound Blog, is that the real estate industry is:<\/p>\n<ul>\n<li>very much protective of its sellers (<a title=\"divorced commissions\" href=\"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=559\">often to the detriment of the buyers<\/a>)<\/li>\n<li>unwilling to operate in a transparent marketplace.<\/li>\n<\/ul>\n<p><strong>That lopsided opacity was the real reason for the eventual implosion of the real estate market.<\/strong> We hid market information from the buyers while the Baby Boomers moved through the home ownership life cycle.\u00a0\u00a0 A huge generation, yearning for &#8220;The American Dream of Homeownership&#8221;, assured strong demand for houses in the post-World War Two housing boom.\u00a0 Banks were all too happy to hand out money, <a title=\"Community Reinvestment act\" href=\"http:\/\/www.lewrockwell.com\/dilorenzo\/dilorenzo125.html\">even when forced to lend by the Government<\/a>.\u00a0 Lew Ranieri saw a 25-year boom ahead and<a title=\"bad loans breadbox\" href=\"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=1147\"> found a way to create a shadow banking system that could &#8220;bury bad loans&#8221;<\/a>.\u00a0 Any agent dealing with a short sale understands the problem of buried loans because she&#8217;s heard:<\/p>\n<blockquote><p>&#8220;Well, we aren&#8217;t quite sure WHO owns this loan&#8221;<\/p><\/blockquote>\n<p>Kind of sounds like the forensic audit of Bernie Madoff&#8217;s books, doesn&#8217;t it?\u00a0 That&#8217;s what you hear when the jig is up on a Ponzi scheme:\u00a0 confusion, wagon-circling, and practiced deflection.\u00a0 It eventually catches up with the schemers.\u00a0 I&#8217;m firmly in the camp that no matter how many incentives we offer to <a title=\"obama refinance\" href=\"http:\/\/makinghomeaffordable.gov\/\">stave off the inevitable forced sales<\/a>, or to provide a <a title=\"middle-class tax cut\" href=\"http:\/\/www.slate.com\/id\/2130017\/\">middle-class tax cut<\/a>, or to <a title=\"$8000 tax credit washington\" href=\"http:\/\/www.washingtonhomebuyerstaxcreditadvance.com\/?p=15\">bribe the next generation of buyers<\/a>, the simple fact remains that <a title=\"housing supply\" href=\"http:\/\/blogs.wsj.com\/developments\/2009\/01\/13\/nationwide-housing-supply-still-outpacing-demand\/\">we have more houses than we need in this country<\/a>&#8230;and the people just ain&#8217;t buying like they used to.<\/p>\n<p>It&#8217;s partly the National Association of REALTORs fault.\u00a0 They&#8217;ve <a title=\"NAR DOJ\" href=\"http:\/\/www.realtor.org\/law_and_policy\/doj\/nar_doj_in_depth\">hoarded supply data<\/a> and intentionally suppressed demand data since inception.\u00a0 Suppressing the demand data resulted in a valuation system that relied on false positives (comparable sales) as a standard that contributed to the Ponzi-like atmosphere in the real estate market.\u00a0\u00a0 Think about it.\u00a0 When we ask agents about rising demand, they point to dwindling supply as a measure of it.\u00a0 <a href=\"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8871\/what-if-the-real-estate-industry-didnt-control-the-real-estate-market\/#more-8871\" class=\"more-link\">Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>I have the heart of a trader.\u00a0 If you read Mortgage Rates Report, you know that I&#8217;m fascinated with the forces that make markets move up, down or not at all.\u00a0 One of the things I&#8217;ve noticed, since I started writing on Bloodhound Blog, is that the real estate industry is: very much protective of [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,26,5,30,19],"tags":[],"class_list":{"0":"post-8871","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-disintermediation","7":"category-lending","8":"category-real-estate","9":"category-supplanting-the-nar","10":"category-technology","12":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":5446,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5446\/offering-more-service-to-buyers-for-a-bigger-slice-of-the-buyers-agents-commission-redfin-moves-closer-to-traditional-real-estate\/","url_meta":{"origin":8871,"position":0},"title":"Offering more service to buyers for a bigger slice of the buyer&#8217;s agent&#8217;s commission, Redfin moves closer to traditional real estate","author":"Greg Swann","date":"November 6, 2008","format":false,"excerpt":"When I represent buyers, I see my biggest responsibility as taking the fear away. Yes, I need to find and show houses. Yes, I need to write contracts and supervise inspections. Yes, I need to husband everything through the lender and the title company. But the job of jobs is\u2026","rel":"","context":"In &quot;Disintermediation&quot;","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":272,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/272\/escape-clause-would-help-all\/","url_meta":{"origin":8871,"position":1},"title":"Escape clause would help all","author":"Greg Swann","date":"September 1, 2006","format":false,"excerpt":"This is me in today's Republic (permanent link), another chance at infamy:Escape clause would help all Believe it or not, this can be a rabble-rousing column. Sometimes I write about the perils of dual agency or why the buyer is actually paying for everything in a real estate transaction or\u2026","rel":"","context":"In &quot;Marketing&quot;","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4234,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4234\/august-was-a-great-month-for-real-estate-sales-but-when-40-of-buyers-are-pushed-off-the-playing-field-home-prices-could-plummet\/","url_meta":{"origin":8871,"position":2},"title":"August was a great month for real estate sales, but when 40% of buyers are pushed off the playing field, home prices could plummet","author":"Greg Swann","date":"September 6, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0August was a great month for real estate sales, but when 40% of buyers are pushed off the playing field, home prices could plummet We won't have reliable numbers for a few days,* but preliminary results leave\u2026","rel":"","context":"In &quot;Investment&quot;","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":401,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/401\/blogoff-post-24-how-to-make-buyers-fall-in-love-with-your-home\/","url_meta":{"origin":8871,"position":3},"title":"Blogoff Post #24: How to make buyers fall in love with your home . . . ?","author":"Greg Swann","date":"September 26, 2006","format":false,"excerpt":"From the Problogger \u2018How To\u2026\u2019 Group Writing Project, Stix 'n' Brix teaches us how to make buyers fall in love with our home:Uncover The Bones Clean It Up Neutral Does It Curb Appeal Sells Set A Comfortable Mood Head Off Their Doubts Price It RightIn general, I like the detailed\u2026","rel":"","context":"In &quot;Blogging&quot;","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":533,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/533\/for-sale-by-owner-sellers-can-help-move-real-estate-market-into-new-buyers-world\/","url_meta":{"origin":8871,"position":4},"title":"For-sale-by-owner sellers can help move real estate market into new buyers&#8217; world . . .","author":"Greg Swann","date":"October 13, 2006","format":false,"excerpt":"I gripe about the meager little 350 words I get in my column in the West Valley sections of the Arizona Republic. What I want is 1,500 words on page one of the Sunday Buiness section! But today's column (permanent link) is an example of how 350 words can effect\u2026","rel":"","context":"In &quot;Marketing&quot;","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1076,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1076\/the-sunday-real-estate-section-advertisement-problem\/","url_meta":{"origin":8871,"position":5},"title":"The Sunday Real Estate Section Advertisement Problem","author":"Dan Green","date":"February 26, 2007","format":false,"excerpt":"Let's all agree on the following: Most home buyers begin their home search on the Internet Most home buyers use Web-based software to \"preview\" homes online Most home buyers receive regular email\/web updates from their agent about new homes worth previewing If we know all of this to be true,\u2026","rel":"","context":"In &quot;Real Estate&quot;","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"REMAX Listing Sheet from papers","src":"https:\/\/i0.wp.com\/www.thevillagenews.com\/images\/bus\/remax-united.jpg?resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/8871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=8871"}],"version-history":[{"count":12,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/8871\/revisions"}],"predecessor-version":[{"id":8899,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/8871\/revisions\/8899"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=8871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=8871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=8871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}