Bubble Wrap
Entry
Surprise! Home Prices Down
The NY Times covers the National Association of Realtors home sales report. After 11 years of of increases, the median price of an existing home is finally down compared to the same period last year.
David Lereah, chief economist of the association, said he expects prices to continue to fall. “We do expect an adjustment in home prices to last several months, as we work through a buildup in the inventory of homes on the market,” he said in a written statement. “This is the price correction we’ve been expecting — with sales stabilizing, we should go back to positive price growth early next year.”
Early next year? That sounds nice, if not a bit optimistic.
“With inventory still rising, there is no chance of any short-term relief” for sellers, said Ian Shepherdson, chief United States economist with High Frequency Economics. “Prices and volumes have a long way to fall yet.”
