2007 Median House Prices Fall For The First Time In Decades. No Profits In Sight.
Jan 27th, 2008 | By moneyking | Category: Real Estate
For your consideration: 2007 Median House Prices Fall For The First Time In Decades. No Profits In Sight.
It’s not often you’ll see us post twice on the same subject in the same day. However, today is different, according to the New York Times . Today, the paper is reporting that in 2007 median single-family home prices have fallen across the entire US for the first time in decades.
Now, it’s difficult to gauge home prices succinctly across the whole US. You know this . . . The Money Kings, however, view this report as more of a admonition that the US economy is receding in size leaving no profits in sight. Time for reflection on how we make money and save money with our homes.
What’s key to remember with all of this is that markets are alive without cycles. If prices don’t fall and rise, then no one can make money in between the peaks and valleys. You have to live with this fact. When you lose money, someone makes it back. Someone creates a product and bears an expense of time and money. They are then repaid by the free market for their loss. If the payment is greater than the loss, then profit is found. This is what The Money Kings are all about.
House prices falling create great buying opportunities for many. Interest rates are low, and prices are dropping. Time to be choosy! Remember the following, if you’re a buyer:
1. This market puts you in the driver’s seat, but don’t get GREEDY!
2. Take your time with selecting a house that is financially “right” for your pocket book.
3. Be honest with your future financial goals, and don’t overextend your finances.
Remember the following, if you’re a seller:
1. Your house will sell; so be patient.
2. Don’t be afraid to make improvements and investment in your home only to sell it a higher price. This is your active participation in improving your place within the market. You’re a player now. Start making advancing moves across the Chess board.
3. Make ‘em show you proof of funds and a pre-approval letter before even showing your house.
4. Don’t lose your “sellers-face” until all paperwork is signed!
Good luck out there.
The Money Kings
Keywords: house, price, home, recession, seller, buyer, decade, New York Times, median, single-family
Yep, just saw the following excerpt on Yahoo at http://biz.yahoo.com/ap/080128/economy.html
“The Commerce Department reported Monday that sales of new homes dropped by 26.4 percent last year to 774,000. That marked the biggest decline on record, surpassing the old mark of a 23.1 percent plunge in 1980.
The government reported that the median price of a new home barely budged last year, edging up a slight 0.2 percent to $246,900, the poorest showing since prices fell by 2.4 percent during the 1991 housing downturn.
And the slump in sales and prices appeared to be worsening at year’s end. December sales fell by 4.7 percent, a bigger-than-expected drop, while the median price of a home fell by 10.4 percent last month, when compared to December 2006, the biggest 12-month decline in 37 years.”
Not good if you’re a seller. But if you’re looking to buy a home for yourself, or as an investment, now seems like the time to do so.