The National Association of Realtors reported today that home prices dropped by 1.5% from a year ago although sales dropped by 10.8% compared to the second quarter of last year. In addition, the report showed that many markets saw price appreciations instead of drops. Salt Lake City saw a price appreciation of 21.9%.
To me, the data seems to show a spotty housing market with some overbuilt areas feeling the pain while other areas seem to be doing fine. In general, I feel that as long as the job market stays robust then the housing market will avoid a major collapse. Housing is one of the last things someone wants to lose. Although the increases in ARMs will cause some pain an overall healthy economy should keep the market fairly stable.
If the economy slips into recession or the unemployment rate increases though, all bets are off.
Sponsor Updates and Offers
|
|
|
Related Articles:
Market Commentary with Mark Schmeer, President of MFC Global Investment Management by PhilR - Jun 28, 2007
U.S. ISM Services Index Reached 14-Month High in June by Sam Cass - Jul 05, 2007
Semi-interesting discussion on where the market is going. by Thomas Bivens - Jul 09, 2007
How Might Subprime Issues Unravel? by ChristySchien - Jun 21, 2007
First Stage of Real Estate Grief by CherylW - Jun 22, 2007
Housing downturn may deepen by Let It Ride - Jun 24, 2007
Home sales hit slowest pace in 4 years by CherylW - Jun 26, 2007
New York Real Estate Prices at New Heights by PhilR - Jul 03, 2007
Good Recap on Housing Bubble News by PhilR - Jul 06, 2007.
Add to reading list
