Excuse me NAR…that is a cart you put in front of the horse…

I have once again had the opportunity to peruse the latest initiative from the NAR. It is a program dreamed up in a think tank far removed from reality and conceived by a group of people totally out of touch with the world around them. By the way, we pay for this sort of nonsense.

“Home Values” demonstrates the long-term value of housing as an investment, and encourages buyers who are on the fence about making a home purchase to contact a REALTOR® who can help them make a smart investment in their future.” from the NAR website.

Memo to anybody at the NAR that can read and comprehend common sense.

YOU HAVE PUT THE CART IN FRONT OF THE HORSE……….AGAIN !!!

I will try to keep this simple for you. There is natural progression Americans make as they mature. They are educated, attending the finest universities. They socialize. They bond. They marry. During this process they learn the pain of accumulating enormous debt. College loans can take years to repay. They discover the magic of credit cards and they also discover the angst of repaying for nights on the town and constantly updating your wardrobe. They enter the workforce and are shocked to learn that they do not know everything and they can be replaced at the whim of management. They realize that they may be faced with entering a profession that has no resemblance to the job of their dreams. We share with the the sweet phrase..”Welcome to the real world.”

They capture the heart of another and often become man and wife. Most of these unions produce a bit more than one child. The census bureau pegs the average family at 3.1 persons. My guess is that either half the married people are always 3 months pregnant during a census or most folks have one child but every third family has two. It is a math thing.

Once they have been saddled with the debt and they find a suitable spouse and they produce one offspring, then they have to discover the art of budgeting income against expenses.

These are the people that you are suggesting need to view their home purchase as an investment. These are the people that you have determined will listen to that rediculous message.

Stop it!!!!!

Any parent worth their salt will tell you that a home is not an investment opportunity. A home is where you share your life with your spouse and children. A home is your personal place in demanding world. A home is a home.

Now, I believe that the majority of people that accumulate wealth own a home. I am sure that a great deal of the investment wealth Americans enjoy is real estate based. The value of anything is intrinsically tied to supply and it is evident that there is only so much dirt, brick and block. That being said…buying a home is not investing. Buying a home is buying a HOME. (I am trying so hard to keep this simple)

Owning a home does create a sound environment for preparing to invest. Home ownership requires paying a mortgage. Paying a mortgage usually requires budgeting your money. Budgeting your money creates the opportunity for saving money. Money saved is available for investment. The home comes first…investment comes later.

Stop pushing home ownership is a great investment. There are literally thousands of empty condos created with that thought in mind. There are close to a million foreclosures and many of them are the result of “this is a great investment” mentality. Before the dollar falls much farther, you might be better suited to promote the value of a home and the value of a dollar. A market that was built on the fragile dream that buying was a good investment has left millions of Americans broke and renting.

I think it is time you promoted Realtors and let them share the benefits of home ownership with their clients. Realtors actually live in these neighborhoods. Realtors drive these streets. Realtors have bills to pay. Realtors feel the same pinch at the gas pump. Realtors understand the value of a home. Realtors know the true meaning of “Home Sweet Home”.

Me thinks you have the cart way in front of the horse. If you truly wish to see the market turn around, stop preaching self serving crap and start promoting those of us that live in the market you are attempting to influence.

Agree or disagree, you will always hear it from the heart from me. My name is John MacArthur (some call me JMac) and I thought, wrote and approved every line of this message.

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