Before I start I will preface this post with, the National Association of Realtors ("NAR") irritates me.  They are a (brain) washing machine that is stuck on the spin cycle.  They spin: numbers, words and home buyers & sellers (collectively, "Consumers") into transacting.  One of the ways that the NAR gets its message out to Consumers is through radio advertisements (see NAR's Public Awareness Campaign: Radio).

This morning while getting coffee I heard a NAR commercial on the radio that tried to persuade me to transact.  To summarize the ad, they told me that there has never been a better opportunity to buy a home because the inventory of homes for sale has never been greater.  Did you catch that last part, inventory of homes?  Phrases like this are what drive my disdain for the NAR.

They are spinning the truth and making it seem like the Consumer is an idiot if they don't buy a home right now.  What truth are they spinning?  Inventory.  The reason why the inventory of homes has never been greater is because of the large increases in foreclosures and REOs.  They are spinning foreclosures and REOs into a more pleasant and palpable word: inventory.

The facts are that foreclosures and REO properties have never been greater because the housing bubble has burst.  Calculated Risk posted an excellent chart today that shows foreclosure activity using OCC and OTS reports.  For Q2 2009 nearly 1,000,000 foreclosures were in process and roughly 375,000 homes recently started the foreclosure process.  There is your "inventory" folks.  

What is the point of this rant?  I want you to critically think.  Think about the message behind the ad.  Whom is the NAR helping?  Are they helping you or its network of real estate agents that live off of commissions?  Is this really the best time to buy?  For a new homeowner the answer might be yes.  However, for most existing homeowners I would argue no.

Recommended Reading:
Calculated Risk, OCC and OTS: Foreclosures, Delinquencies increase in Q2
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