How it's possible for the media to spin that sales prices are up (which is complete bullshit, btw):
EXAMPLE#1:
5 sales
4 @ 100K
1 @ 200K
Avg sales price is 120K.
EXAMPLE #2:
5 sales
3 @ 90K
2 @ 175K
Avg sales price is 124K.
So, consider the source and then look around. Ask yourself, is there anyone you know who is better off today than they were say 2-3 or even five years ago? COMMON SENSE!
Directly from Kirk Nace: "Reality is the low end dropped, the high end dropped and more people at the higher end are finally being hit and/or deciding to not hang on so they walk away. In most markets the lower end was hit first and is further through the correction than the mid and upper ranges, so now a higher percentage of total sales has moved to the mid and upper ranges. Average homes in those ranges aren’t selling for more, but the fact that more sales are occurring there is pulling market average prices up."
In other words, the LAW of Supply and Demand has not been repealed!
Please submit comments and/or commentary directly on this site, or email me if you'd like further clarification of this.
