Schizo was talking about inventory stabilizng and the article points out that inventory (despite all the REO’s on the market) is actually 2,000 units below last year’s level at this point. If you want to figure out what is happening you have to be objective.
I find it strange that the median price for resale homes was actually up YOY in August when it was widely assumed that Jumbo loans were becoming very hard to get. While median is not a great indicator, I would have thought a lot more lower priced homes would have sold in the face of poor liquidity for non-conforming loans.
If you look at the numbers from this article, the overall median (for all homes) was influenced mostly by the big drop in new home/condo sales prices. REO’s and new homes are “must sell”. As those inventories increase prices (overall) should continue to drift lower. It would be interesting to get an accurate reading on inventories of REO’s and new homes and be able to track that.
