On the good side, while the pace of year over year declines is still negative the rate of year over year decline continues to improve.
However, on a month to month basis we're seeing price appreciation stall, as evidenced by
the fact a majority of cities have seen a decline over the last two months.
So -- what does this mean? Starting in November there was confusion in the market about the new home buyer tax credit program. As it was set to expire, we saw a big drop in existing home sales on a seasonally adjusted basis. Weaker demand = lower prices. We'll have to see how all of this plays out over the next few months.
1 comments:
It is a major sign of fundamental weakness in the housing market that prices have only stabilized, when interest rates are being kept artificially at record lows because the Federal Reserve is printing money and buying mortgage backed securities, and because the Federal govt's $8k first time homebuyers tax credit and current credit for most all homebuyers. With the end of the Fed's MBS buying program and the expiration of the homebuyers tax credit, home prices should sink further.
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