The National Association of Realtors reported Tuesday that sales of previously owned homes rose by 3 percent last month, the biggest one- month increase since a 3.3 percent increase in January 2005, a time when housing was roaring toward the peak of its five-year boom.
The median price of an existing home sold in January dropped to $210,600, a decline of 3.1 percent from a year ago. It marked the sixth straight month that the median price has been down compared with a year ago. The January decline was the third-biggest drop in history.
So this is great news! Prices are dropping and sales increased month over month on existing homes! Of course they increased over bad drops and the price is dropping. This feels so much like 1989 its frightening. 1989 was the the end of the last boom and the beginning of the last recession but everybody was saying, "it'll be over soon." It wasn't. The housing market didn't recover until the late 1990's.
"When you get this far away from a recession, invariably forces build up for the next recession, and indeed we are beginning to see that sign, for example in the U.S., profit margins ... have begun to stabilize, which is an early sign we are in the later stages of a cycle,"
Let's just say that we intend, by the grace of God, to buy back into the real estate market in a couple of years at a substantial discount.