After years telling people they can’t lose money on real estate, the National Association of Realtors now acknowledges the popped bubble and puts on its best happy face and says that falling prices are a “good thing.” Details below.
From the November 28, 2006, CBSMarketwatch.com home page:
Median sales prices fell a record 3.5% year-over-year to $221,000, the third decline in a row. Since 1968, when the Realtors began collecting the data, prices had never fallen three months in a row on a year-over-year basis.
Falling prices are “a good thing,” Lereah said. “Sellers are cutting their price enough to encourage sales,” said Pat Vredevoogd Combs, a Realtor from Grand Rapids, Mich., and president of the NAR.
Inventories of unsold homes increased 1.9% to 3.854 million, representing a 7.4-month supply at the October sales rate. It’s the largest months’ supply since April 1993.
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