Housing Market

A big report from the National Association of Realtors yesterday indicated that previously owned homes sold better in September than in August. The problem is that the median price for homes is going down. Housing has taken a value drop as we know. This is the crux of the problem. The housing bubble sent prices way too high and now they are floating down to earth. The people that bought on or in the bubble in many areas are now underwater. They owe more on the house than it is worth. I have close operatives in Las Vegas who are in this situation. Many in Las Vegas have this problem. On the other hand if you are in the market, Vegas is pretty cheap right now, bargain basement prices for lots of space. Its a buyers market.

Nobody is getting a swelled head and saying that the housing market is reviving. Its ever so slightly better, but there still could be several major icebergs as the Titanic floats along already with huge hole in its nether region.

CS Monitor: Home sales rise in September, but a housing glut and concerns remain

Previously owned homes sold at an annualized pace of 4.53 million units, up from 4.12 million a month earlier...


...report also noted a decline in the median price of homes compared with a year ago, consistent with concerns among some analysts that foreclosures and a still weak economy could further depress housing prices, which in turn could lead to more loan defaults.


The median sales price this September was $171,700, down slightly from about $176,000 a year ago.


"More than 20 percent of borrowers owe more than their home is worth..."