But how about the state of our real estate economy?
The old saying says, “beware of wishing to live in interesting times. You may get your wish.” Well, we are living in interesting times, for sure. Stubborn high unemployment, persistent housing foreclosures and ineffective Federal Reserve policies have landed us in a protracted Depression of the highest degree. In the middle of this mess is of course, Housing.
What are the trends? Where are we going from here? Numbers don’t lie. Condos and homes are showing parallel paths in several areas; those properties that are priced correctly will sell, values and inventory remain stagnant (although homes are faring better than condos), but the spread between Listed and Selling prices seem to be moving closer to 0% from historic highs.
Consider this. Listed price of Homes as compared to Selling price moved only slightly from 94.91% in the previous six months to 95.3% now. Condos followed the same pattern from 91.37% to 93.30%. But it gets better. The $/sq ft moves up, from $645 to $697 for Listed properties, and $457 to $471 for Sold properties. Homes showed the same dichotomy, moving from $626 to $639 for Listed properties, and $582 to $589 for Sold properties. These numbers may show marginal indications of solidifying prices, but I interpret them as a Seller revolt instead. They may very well be the sign that the bottom has been reached for Westside homes and condos.
Historically low interest rates and values are a tough combination to beat for the definition of “timing the market.”I strongly believe that any astute real estate transaction today will be looked at as genius tomorrow. There can be no other interpretation of the numbers.