Tuesday, May 26, 2009

High-end buyers still willing to wait for more drop

The Case-Schiller index, which is the most reliable source of home values because it calculate same home sales, dropped again in March.

As the article in the new york times reports, in the lower half of the market, where homes have dropped 50% of peak, volume has picked up.

In other words, buyers buy when fundamental economic balance is restored to pre-bubble prices.


"Dan Greenhaus of Miller Tabak noted that “interested buyers have no reason to purchase a home if they believe prices will continue to fall and those that have to buy a home have every reason to take as much time as possible.”"

Palm beach has not seen LISTING prices drop much, though SALES prices have begun to drop off 30% from peak (i.e., currently at about 2003 prices).

Once prices drop to where the fundamental economics supports sales, buyers will hop back in.

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