Quote:
Originally Posted by burn_this_city
I'd be curious to know the total drop since 06. I'd also like to know why people believe the market is recovering. Especially when you consider the economy and jobs lost this year.
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Average price increases can also be misleading. If less units are moving then that doesn't speak well for the 'hidden inventory' effect. A lot of realty-type people don't want to admit that we're in an over-built situation and it's not just the homes on MLS that are in essence 'for sale.'
I would venture a guess and imagine that the increase in sales is solely first time buyers and upgraders taking advantage of low interest rates. After a while there just isn't the same volume of those people left who haven't already made their move. Hopefully then there's actually GDP increases fuelling growth or the market will plunge.