Asianautica nailed it, median went down and should hold steady because the low end lost a lot of customers and will continue to lose people as the lenders stop giving money to people with bad credit. While there are exceptions, the majority of subprime buyers are in the bottom third of the prices. The middle is up next and will get hit as the move-up buyers fail to materialize. I am in the same boat as affordability has just drifted down to my range but you have to see this play out some more before you panic, even David Lereah in an interview on Monday said it wasn’t the bottom yet. At least let the first half of the summer come and go, by August if it is still moving downward the spin will change to “there has never been a better time to buy” as opposed to “things are stabilizing.”
If Walmart’s sales were to decline 30% but Nordstrom’s went up 2% would any economist declare the economy is fine?
