If no one feels like popping corks, it may be because prices have been stuck in a narrow range since they hit their post-bubble bottom two years ago. Take a look (click to enlarge):
During the chill economic winter of 2009, prices were off 18% from the all-time highs they’d hit barely 6 months earlier. In the spring that followed, prices recovered 5% as Uncle Sam spent billions breathing life into the housing market. But by the end of 2009, prices were back down again.
That may explain why last year’s gains feel more like avoiding scraping one’s bottom than taking flight.
And another scrape might be on the way The chart shows that Days on Market has been increasing for over six months now. That can’t be good.
- The 2010 Residential Wrap-Up: What’s goin’ on? Not much. (pegasusventures.net)