Monday, November 14, 2005

Is the boom over?

It seems very likely that the housing market has stopped it's meteoric rise, which last year rose 40%. Those days are over, as home prices dipped slightly in October, the first such monthly drop since December, 2003.
In reality, I think it is a well needed return to normalcy. The growth of late is unsustainable and I would expect the prices to level out slightly, with annual increases more likely to be in the single digit level in the near future.
Another reason for a return to normalcy is a marked increase in inventory, which in June was at an all-time low. Of course, some of those listings are opportunistic in the sense that owners are pricing into the rising market, which no longer exists, so they will ultimately be disappointed.
Remember, if you need to sell, be reasonable. Pigs get fat, hogs get slaughtered.

No comments:

Post a Comment