Wednesday, November 2, 2011

Home sales up; prices down

There seem to be a lot of mixed messages in the real estate market nationwide as well as locally.
According to a recent article in the Journal of Business, home prices are falling, yet sales are on the rise.
This seems to be the general formula, and has been for at least 12 months.
Home sales in neighboring Spokane have shown three consecutive months of improvement since the home buyer tax credit expired more than a year ago, according to the Journal.
That could mean that the downturn in the market has bottomed out, according to Rob Higgins of the Spokane Association of Realtors.
One of the reasons for increased sales could be the number of foreclosed homes and distressed properties that remain on the market with more of them being classified daily, according to the report.
More REOs and short sales "continue to pressure prices downward," Mike McLean of the Journal writes.
The Spokane area saw a third-quarter increase in home sales of almost 15 percent. Sales in the first nine months combined grew 6.5 percent.
"If we stay in this trend, we could be headed back up," Higgins said.

For more of this article visit:

Ralph Bartholdt
Agent Keller Williams Coeur d'Alene

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