Sales are down but prices…? Not so much. If prices have not really dropped by any noticeable amount what does that say about the current state of the real estate market? It’s really in pretty good shape. In fact, in the 90′s they said the market was terrible; prices were dropping 2-5% per month in the early years. Now that was a bad real estate market! If prices don’t drop and, at the same time, the volume of sales are down, it just means that sellers are not willing to sell at lower prices; they don’t need to. In the 90′s people were forced to sell their homes (bad unemployment). Not today. They simply take their home off the market if they can’t get it sold!
Let’s stop believing everything we read in the newspaper. Yes, sales are down. People are hesitant. However, the market still has very strong signs of sustainability. Maybe when things get back to normal in the Spring people will realize that the second half of 2012 was just a blip!