Median Home Prices Improve

 

One positive sign is new homes inventory is near a record low so it won't be hard to knock inventory down quickly when demand picks up.

The median sales price of new houses sold in November 2010 was $213,000; the average sales price was $268,700. Technicals are everywhere and aren't limited to MBS and financial markets.  Economic data can be highly technical and importantly so, considering technicals are a proxy for underlying psychology.  Note the trend that we've been in since 2009 and that last report fell way short of that.  As hoped, that proved to be an outlier as median prices rose back in line with the trend on this month's report. Consider that a modest recovery for now.

The decline in home prices was a bit startling in October but we're dealing with seasonal distortions, foreclosure moratoriums and the expectation that shadow inventory will eventually push home prices even lower. Maybe that’s already playing out in the housing market. Qualified buyers are in control.

– Courtesy of Mortgage News Daily