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The real meaning of rising home prices

By Call it Crazy   Follow   Thu, 20 Dec 2012, 8:27am   624 views   7 comments
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http://www.marketwatch.com/story/the-real-meaning-of-rising-home-prices-2012-12-20?dist=lcountdown

As home prices continue to climb, some analysts are questioning whether that alone indicates the housing market is truly in recovery mode.

The national median sales price of existing single-family homes hit $180,600 in November, 10.1% higher than a year ago, according to data released this morning by the National Association of Realtors. It marks the ninth consecutive monthly year-over-year increase, which last occurred from 2005 to 2006. Since January median prices have risen about 17%.

But experts say that spike is largely due to the limited number of homes on the market. There were about two million existing homes available for sale at the end of November, which equates to the lowest housing supply since September 2005, according to the NAR. With fewer homes to choose from, buyers intent on purchasing a property are more inclined to offer a higher price or engage in bidding wars, housing analysts say, which ultimately drives prices up.

For home buyers, the current trend has resulted in higher prices for a smaller selection of homes.

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1. bmwman91 Follow Befriend (7) 37 threads 1,525 comments Mountain View, CA bmwman91's website Premium

   1   9:41am Thu 20 Dec 2012   Share   Quote   Permalink   Like (8)   Dislike   Protected   I think that the market is LESS healthy now than it was in 2005. It was getting pumped full of uppers then, it crashed and now it is lying half-dead on government life support. The thing is that the government can keep it zombified for a very, VERY long time. I think that we all need to say hello to and accept our "new normal."

2. APOCALYPSEFUCK is Shostakovich Follow Befriend (28) 169 threads 4,153 comments Premium

   2   10:38am Thu 20 Dec 2012   Share   Quote   Permalink   Like (11)   Dislike   Protected   There is a reason why this commentary was voted best of all time on pat.net. Because it's true: If you put enough arm into it, any dead cat will bounce, even appearing lively for a moment as it leaves the sidewalk. When an entire industry is vested in making the dead cat appear convincingly vital, really anything can happen for a month or two. When the whole federal government has thrown everything it and the Wall Street psychopaths can muster to keep the bubble inflated, the cat may even blink momentarily.

3. bmwman91 Follow Befriend (7) 37 threads 1,525 comments Mountain View, CA bmwman91's website Premium

   3   11:00am Thu 20 Dec 2012   Share   Quote   Permalink   Like   Dislike   Protected   AF, you are correct. At this point, the housing market is just the dead cat's tail, which can easily look animated as our deceased feline friend rebounds off of the pavement. The actual dead cat is our entire economy, no?

4. Quigley Follow Befriend (6) 17 threads 516 comments Huntington Beach, CA

   4   11:15am Thu 20 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike   I'm calling the ASPCA about this thread! Outrageous!

5. APOCALYPSEFUCK is Shostakovich Follow Befriend (28) 169 threads 4,153 comments Premium

   5   1:10pm Thu 20 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike   Protected   But it's only a figurative kitty kat!

6. bmwman91 Follow Befriend (7) 37 threads 1,525 comments Mountain View, CA bmwman91's website Premium

   6   1:22pm Thu 20 Dec 2012   Share   Quote   Permalink   Like   Dislike   Protected   APOCALYPSEFUCK is Shostakovich says But it's only a figurative kitty kat! You are starting to sound like Schrödinger!

7. APOCALYPSEFUCK is Shostakovich Follow Befriend (28) 169 threads 4,153 comments Premium

   7   2:00pm Thu 20 Dec 2012   Share   Quote   Permalink   Like   Dislike   Protected   "But's onwee a figgawitiv putty tat," said Tweety Schrödinger