Year-over-year sales up in August, but prices keep falling
September 25, 2008 | 11:10
am
Statewide home sales in August were up 57% from a year ago, the first year-over-year gain in the current real estate downturn, the California Assocation of Realtors reports today. Hefty price cuts continue to fuel sales -- August prices were down 41% from August, 2007.
The median August sales price was $350,140, down from $588,670 a year ago. CAR chief economist Leslie Appleton-Young said it's too early to call a bottom for prices, which will "experience additional downward pressure as we move into the off-peak season in the coming months, and will continue to face pressure from distressed sales," she said.
In other words, we are heading into the slow winter season for home sales, and foreclosures keep mounting.
People are going to be kicking themselves for buying this year instead of next year, but it's their money.
Posted by: Rational Renter | September 25, 2008 at 11:23 AM
Good God, it is bad--even a Realtor economist says prices are heading down.
Posted by: vm | September 25, 2008 at 11:45 AM
2 statewide sales in August 2007. 3 statewide sales in August 2008. NAR: "SALES SKYROCKETING! UP 50%!"
Posted by: Rational Renter | September 25, 2008 at 11:59 AM
I just don't see anything in this picture that would bring a stampede of buyers into the market. Hasn't is always been the case that the uncertainty in economy keeps buyers from jumping off the fence? Well it's the mother of all uncertainties and who nows how long it will last. Probably long enough until the recession is oficiallly admitted to (alas, by the next administration). So, yes, I would say that the pricess will be experiencing a lot of downward pressure from all kinds of factors. Even if somehow miraculously foreclosures stopped, the prices won't stop falling for a little while, if for no other eason then for the psychology of the market. After saying all this I wholehartedly hope to buy a house in a decent neighbourhood with decent schools next april or so. I almost secretly wish (as a future buyer) that the prices WOULD stabilize by then. Any other fence-sitters like us having these sacrilegous thoughts? I mean, who wants to always be second-guessing themselves and renting forever?
Posted by: jake d. | September 25, 2008 at 12:00 PM
Well, at least the "Crapola" from CAR is getting more realistic, isn't it? I guess they're getting tired of looking like idiots every time they open their mouths.
Posted by: JW | September 25, 2008 at 12:05 PM
Rational Renter sez: "People are going to be kicking themselves for buying this year instead of next year, but it's their money."
Not if they're going to be paying a price that factors in another 20% price drop.
Posted by: Drew | September 25, 2008 at 12:49 PM
Not if they're going to be paying a price that factors in another 20% price drop.
What if it drops 40%?
Posted by: D | September 25, 2008 at 06:02 PM
What if it drops 40%
What if it drops 50, 60, 75, 100%?
What if they pay you to take title?
Stick your head in the sand and pull it up in 2 years from now -- then let me know how much farther prices have dropped from today.
Posted by: Drew | September 26, 2008 at 09:57 AM