First of all – the percentage claims you are talking about are, as usual, vastly underreporting what is actually going on. Median prices mean NOTHING. When the cheaper houses no longer can sell (the people who buy the less expensive houses get the crisis first) – only the more expensive homes sell. The most expensive homes always sell, irregardless of what is happening in the market. These factors push up the median price.
The orphan homes (all the homes which have some flaws) – do not sell at all. Only desirable (usually) homes still sell in this marketplace and they aren’t being given away.
The New York city prices have only just started to go down – they were getting more and more expensive correlating to the huge profits being made on wall street.
The most important aspect of the whole lying with statistics deal is that it is not measuring the homes being withdrawn from the market because the market is saturated – and it also proves that we are on a precipice. We have NOT YET experienced a downturn in the economy due to the consumer credit crisis which will follow the liquidity crisis. When the economy sours from real estate and credit the home sales will go down.
Also the vast numbers of adjustables haven’t even reset yet. They will – other than bail outs by the government. Look at today’s new york times.
