Housing Slumps. Who's Surprised?
With apologies to Homer Simpson's Jack Nicholson impression, "No free money and no quick flip makes homeowners ... something, something ..."
"Drop prices?" Don't mind if they do.
Data released today by the National Association of Realtors (NAR) shows that home prices are plummeting just as sales are flagging. In other words, it's exactly as some of us bubble-bursters have been predicting for a while. Too much supply and not enough demand moves the needle firmly in the opposite direction of what the majority of (delusional) Americans seem to think. Houses are worth less now than they were. Fewer are selling. This goes hand in hand, and I don't think we've seen anything yet.