August 23, 2006 at 11:34 PM #7284L_Thek_onomicsParticipant
The “mistery” paradox of the Long Beach real estate market. As everywhere, the high price market took the first hit, then the condos near the beach, then homes in the better neighborhods. There is still some fairly serious buying activity, but who are the buyers? People with money for serious real estate deals, people who moving up with a nice equity generated by their previous house or condo, and
a very small number of idiots. Practically no investors nor first time buyers.
Areas of buying activity: obviously where the deals are, markets desirable for the buying class, well above the median price. The “low price” market is almost dead. Huge inventory of “reduced price” condos and single houses in not so desirable neighborhods for potential buyers with incomes below or around the median family income are out of the market for a while. So why the median price is rising, while the selling prices are falling? The smaller size of statistical samples caused by the drasticly reduced sales numbers are less accurate, even misleading. Also, the substantially larger proportion of buying activity on the discounted, higher price markets consequently moves the “median” price upward. Nice false “fact” for the real estate profession: “Prices are still going up”.
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