News hit the fan yesterday that new home sales prices in the US had the largest downward movement in 35 years.
Without question, this is one of the most significant events in housing prices in a long time. Probably longer than many reading this have been alive. Therefore, the thing to remember is that this housing downturn is unlike any you have seen before. This is not your average run-of-the-mill 1990's defense spending cuts downturn. This is the real deal.
In fact, Mark Zandi, Chief Economist at Moody's.com is quoted in the article:
"It is going to be painful because there are a lot of price declines to come."
Zandi said he is forecasting that prices of existing homes will drop by 3.7 percent in 2007, which would be the first decline for a full year since the Great Depression of the 1930s.
For those that don't have an appreciation of history, the Great Depression is a period of strong price deflation.
2 comments:
Some of the condos here in Parkridge have been for sale for quite some time and seem to have changed listing agents. At least one is for sale by owner, I believe #1. I don't know any of the sellers, does anyone know if they are getting any bites...offers, dropping prices?
If you look at realtor.com 2 listings for 1 brdms/1 bath are listed at $294,000 and 1 other at $299,900. There is 1 - 2 bdrm listed at $354,900.
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