What are the signs of a healthy market? I think we would all agree, price appreciation is a sign of health. I think we would all agree, year over year sales volume and transaction numbers are further signs of a healthy market. But, what if the increase in the number of transactions is the result of a new lower price paradigm and not appreciation? What if the number of transactions is up, but the dollar volume is static or even less?
Mixed signals is what we have. Across the price spectrum, we have mixed signals. For this is the first residential housing market I’m many years with little to no stimulus. One has to have good credit, a downpayment, show reserves and have demonstrated the ability to repay the loan. Skin in the game!
A free market again? If I could, I’d be a buyer in this market.