Real Estate and Housing Market Mixed Signals?
According to a recent article bythe excellent Associated Press journalist Martin Crutsinger, the real estate market in general and the house market specifically
has been giving off a lot of confusing mixed signals as of late…….
For example, sales of new house increased last month (o4) by the largest amount in some fourteen odd years, and yet the median price of a new house actually dropped by the most sizeable amount on record. These rather odd indicators
have seemingly left no clear picture as to whether or not the the country’s housing slump is finished. Real estae sellers and buyers a like are still quite wary
in this unpredictable atmosphere….
This is due to the fact that while sales of new one-family houses increased by some 16.2 percent in April,
the actual average price of a new house sold last month fell to $229,100, a record 11.1 percent decrease from the prior month!
Sales fell particularly in the Midwest, which saw a substantial four percent drop-off rate.
The country’s economy as whole cooled down in the first quarter of 2007 to an annual adjusted growth rate of merely 1.3%, which is the weakest rate in 4 years, while the big slump in housing continued to weigh on the economy’s overall performance.