CIRCUMSTANCES WHICH WILL ACCOMPANY A TURN IN RE PRICES . . .
Hmmm . . . stabilizing inventory levels (high but not rising) and now home sales increase slightly and register above expectations and the stock market rallies 120pts. RE Market is down and not going higher anytime soon. The question is what is it going to do??? If I just had that crystal ball . . . . For those worrying about missing the turn in the market (first don’t worry its not turning up anytime soon, it may also not be turning sharply lower however) there historically have ALWAYS been certain precursers to a turn in RE prices. 1st high inventory numbers stop rising, stablize, and begin to fall. Inventory numbers have almost always fallen from their highs by about 35 to 40% before bottomed out prices just begin to perk up. Even then it is a very slow turn as inventory continues to shrink past 50% of the high. Once the 50% of high inventory mark is met . . . it is good to be in front of the coming wave of upward prices. Last time it was a titantic tsunami. Next time who knows it could only be a mild ripple. How long before the wave and how big it will be (tsunami or ripple) NO ONE KNOWS, it could be years (thus I am still searching for the crystal ball). However, the above circumstances have always preceded a turn of home prices in the past.
