Are We Nuts?????????
WASHINGTON (MarketWatch) -- Boosted by a record decline in prices, the U.S. housing market showed signs of stability in February, with sales of existing homes rising modestly for the first time in seven months and inventories falling, the National Association of Realtors reported Monday.
“The median sales price plunged to $195,900, down 8.2% from a year earlier, the largest price decline recorded since the Realtors began tracking both single-family homes and condos in 1999. Prices of single-family homes fell 8.7% in the past year, also the most since the records began in 1968.”
“Sales of condos are down 29.7% in the past year. Inventories of unsold condos rose 14% to 604,000, a 13-month supply.”
In a non event month, everyone is happy because sales have "stablized" because of record price discounting. How many of these homes were foreclosure sales? In CA, in some areas it was the majority. Not only that, defaults are continuing to rise meaning more foreclosures are on the way.
For illustrative purposes only, what if we discounted houses to $1 each, simply so people would assume the property tax, maintenance fee, and insurance responsiblity......how much of an improvement would we have seen in unit volume then?
By the way, don't be suprised if this actually happens in the next six to nine month as a whole bunch of new condos are delivered. In Florida right now, you can rent a quality condo for cheaper than the monthly mainanence, insurance, and property tax cost.
Don't be surprised if a $1 house or condo comes your way..........