Below is a blog post from a guy I follow fairly frequently. In his post today, I thought he presented a good summary about the state of housing prices and they’re likely direction. We all suffered through Econ 101 and learned that Supply and Demand are related. Take a read at the first few paragraph’s and then through click to read more. If you like what’s here, drop me an email; I’d love to know if this is interesting to many people who visit this blog.
Why Prices Will Soften in the 1st Half of 2011
by The KCM Crew on January 13, 2011
The big question facing real estate in 2011 is which direction are home prices headed. We agree with most experts who believe prices will continue to soften for the first half of the year. Supply and demand will determine this. Let’s look at where real estate sits entering this year compared to the beginning of 2010.
Demand
1.) Last year, The Home Buyers Tax Credit was both extended to the end of April and expanded to include move-up buyers. This increased demand to some degree. However, most now believe that the tax credit simply dragged demand forward from later in the year. What took place was a surge in sales prior to the deadline and then a dramatic fall off after April. (Read more…)
Have a great day.
DS
