Sunday, August 26, 2007

Housing prices declining for the first time ever?

The front page of the New York Times on Sunday featured an article title "Drop Foreseen in Median Price of Homes in U.S." the sub title is "Dip Would Be A First". Interestingly, the government records of housing prices have been kept since 1950 and have never showed an annual decline. There have been quarter over quarter declines until now but never on an annual basis. This year they are expecting it.

There are also great quotes in the article from noted economists who had proclaimed just a few years ago that the housing market could never be prone to a national setback because it is too localized and there is not national market for housing.

On the whole, do you think this is a good thing or a bad thing for us? The bad, obviously, is that it is an indicator that the housing slump is more measurable than ever. The good could be that with prices actually coming down we may get some buyers ready to step in the buy up the value priced homes.

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