Wednesday, January 31, 2007
Has the housing market reached the bottom?
We always find it amusing when the AP reports the following title "Biggest existing home sales drop in 17 years". This is from an article on the 25th of January by the associated press. Now lets look into the article and see what we can find.
First the last 5 years of home sales has been an absolute record. The article eventually mentions this even though you won't know it from the title. So the number of homes sold is off from what has arguably been the greatest 5 years in real estate history.
December sales were down .8 percent from a year ago states the article. Ok once again down .8 of a percent from a record. All those who had Enron or World Com Stock do you wish that it went down only .8 of a percent? I thought so.
For the year the median housing price still rose 1.1%. For the average price of a home in America at $225,000 that means the average american home owner made just over $2,225.00 for doing nothing but paying the mortgage on time. You know I have to think that if that is a bad thing then what if anything does it take to be good news.
Overall the news is like this in our opinion. If you waited to buy a house there are still some nice choices out there. If you are selling and bought 2,3,4 or more years ago you will be doing just fine. Real Estate will always be a great investment unless we all decide it is more fun to live outside all the time.
As always we leave you to decide the truth about real estate!
First the last 5 years of home sales has been an absolute record. The article eventually mentions this even though you won't know it from the title. So the number of homes sold is off from what has arguably been the greatest 5 years in real estate history.
December sales were down .8 percent from a year ago states the article. Ok once again down .8 of a percent from a record. All those who had Enron or World Com Stock do you wish that it went down only .8 of a percent? I thought so.
For the year the median housing price still rose 1.1%. For the average price of a home in America at $225,000 that means the average american home owner made just over $2,225.00 for doing nothing but paying the mortgage on time. You know I have to think that if that is a bad thing then what if anything does it take to be good news.
Overall the news is like this in our opinion. If you waited to buy a house there are still some nice choices out there. If you are selling and bought 2,3,4 or more years ago you will be doing just fine. Real Estate will always be a great investment unless we all decide it is more fun to live outside all the time.
As always we leave you to decide the truth about real estate!
You be the judge of the real estate market!
Labels: buying a home, home prices, Housing Market, median home value, real estate market, real estate prices, values of homes
