Hmmm... Seems that not only are new homes on the market longer, with inventory increasing, but this is also happening with resale homes. Resales of U.S. homes fell 2.8% in January to the lowest number in two years, the National Association of Realtors said Tuesday.
Sales are down 5.2% since January 2005. It's the fifth consecutive monthly decline. Is this a trend or a blip?
What do the experts think? "Demand is dropping and supply is rising," said Joel Naroff, president of Naroff Economic Advisers. "It doesn't take a Ph.D. in economics to know what the implication of that is: It's Wal-Mart time - 'Watch out for falling prices!'"
Well, I'm not holding my breath yet. As the spring buying season heats up, I'm still seeing prices staying fairly steady (if not increasing) in my local area. But who knows? It would be nice to see a buyer's market for a change.
Michael
