Tuesday, June 23, 2009
This goes in the category of "the dog that didn't bark." Despite all the gloom in the housing market, sales activity has been essentially flat (well, actually, this measure of sales fell 3% from year-ago levels, but that's pretty close to flat in my book) for the past year. Prices are down, but falling prices have enabled the market to clear. We are not in free-fall; markets are working. Lots of people are losing lots of money as prices fall, but there is still demand to own the existing stock of housing. Lots of people are buying homes at prices that are far more affordable than they were a few years ago.
Posted by Scott Grannis at 9:58 AM