While number of sales has dropped in a lot of markets (perhaps 25%, year-to-year, in Massachusetts and in Boston), prices have not, in many. Yet. (Some economists predict lower prices in Las Vegas and parts of Florida, due to overbuilding.)
What’s going on?
New mortgage applications are up. Pending home sales are up. The economy is expanding. Unemployment is at 4.6 percent. And mortgage rates are still historically low …
All the dismal reports about the real estate market overlook the realities in the market place, some housing experts say.
Today’s “unusually low” long-term mortgage-rate environment “stands in sharp contrast to some past downturns in the housing market that followed actions by the Federal Reserve to tighten credit conditions significantly,” Kohn adds …
Perhaps the most blunt appraisal comes from Mike Moran, chief economist of Wall Streetâ€™s Daiwa Securities America. Moran says the financial press is taking a normal and long-predicted cyclical rebalancing and â€œportraying it as a catastrophe.â€?
Complete story: Economists Say Housing Downturn Isn’t So Bad – By Kenneth R. Harney, Washington Post Writers Group, by way of Realtor.org