Yes, residential real-estate remains in the throes of the worst downturn since the Great Depression. Yes, home prices are the lowest in six years and still falling. And yes, it still takes three quarters of a year to sell a house.A surprising increase in existing home sales, if it turns into a lasting trend, may well be a guide. Only time will tell. But what is telling about the reasons behind the surprising increase is more important:
Nevertheless, the market might have turned a pivotal corner last month, if a surprising increase in existing home sales is any guide.
prices appear to have fallen enough in some regions to make buying cheaper than renting, particularly in the WestI thought the West was different? Isn't the West where all boomers go to die? Isn't the West where incomes are so high the pot of gold at the end of the rainbow is in the trunk of everyones' BMW? I guess not. Or if they are hiding gold, they're not spending it:
U.S. home prices plunged a record 18.2 per cent in NovemberThree "truths"--if we allow history to be our guide--about the Victoria real estate market:
Average home prices are at similar levels to what they were in the first quarter of 2004
Home prices have dropped so much in some areas of California that monthly mortgage payments on single-family detached homes are comparable to apartment rents
The inventory of existing homes for sale fell 11.7 per cent to 3.68 million units in December, translating into 9.3 months of supply. "But, six months is the natural rate of inventories, so supply remains high,"
- Over the long-term, real estate values go up
- In every correction over the past 30 years, at the bottom of the trough it became cheaper to own than rent an equivalent property
- Our real estate market has consistently lagged similar US markets by roughly 1-2 years