The Case-Shiller Index is going to come out tomorrow and tell us that home prices are on the rise.
See and article here.
Of course, I’ve been telling you about this since March of this year. We saw it coming because we see the numbers, direct from the multi-listing service (MLS). Here is an oft-repeated graph from the Cromford Report:
Here are some things to remember:
1) Reports like this are always 3-5 months behind because the people who report them want several months behind them before they feel comfortable making any statements, even if the triggering event happened 4 months ago!
2) Prices are not going to rocket up like they did from 2005-2007. The economy is just not that strong. So, today’s market is much like it was in 2001-2003. It is still a great time to buy.
3) Stratify the market. Homes on the market sell faster the cheaper they are. A $100,000 home that is a foreclosure is going to sell in a matter of days or weeks. A $300,000 traditional sale may stay on for a few months. However, the over-all market is very close to equilibrium, which means homes sell in about 5 months. Homes over $1 million have an “absorption rate” of 848 days!
4) The Case-Shiller Index looks at the market nation-wide. Every market is different. Stay tuned for the best local information.