Home Price Drop
by Tom on May 8, 2007
in Uncategorized
The National Association of Realtors is forecasting a 1% drop in the median price of a home in the US. To me that could mean one of two things:
1. Homes are indeed selling for less money than they would have last year.
2. There are more smaller, cheaper homes selling than there are larger more expensive homes. Since the median price means that an equal number of homes are selling for more than that as less than that, that would mean that if we are in a starter home market, the median price would drop.
But, it doesn’t make for good press that way, so the gloom and doom media pushes the story the other way.
What do you think?
