Last week when everyone was talking about median price being down in August, it seemed to me that median prices is generally down in August…or at least flat. The graph shows the relationship in median price for 2005 through present from June through year end. It may give you an idea of what to expect to happen to prices for the balance of 2008. I also find the nexus points fascinating and the 2005 vs the three years following to be very interesting. Hope you do as well.
As usual, I calculated these myself. We expect the YOY volume paths to cross eventually. But I doubt that is going to happen this year. The spread will become narrower beginning at the end of September. But there will still be a spread, I think.
For these grapsh I combined condos with SFR because over this 4 year period, tracking what buyers are doing is more important than whether they chose a condo or a single family residence.
During this period we saw many choosing condos vs. SFR because they could not afford SFR. Now we are seeing the reverse with SFR prices getting lower than townhome prices. That is putting pressure on townhomes to be cheaper to compete with the single family home market. During swings from condo to SFR and vice versa, it is best to combine them to see total buyer activity and trends.
Required Disclosre: Data not compiled, posted or verified by NWMLS