Well, here’s several ideas, although I don’t know how much faith I’d put in to them.
His number one reason? Reported sales prices are still going up, but developers of new properties are adding in lots of concessions, such as appliance upgrades and paying closing costs, so buyers are actually getting more home for the money.
Question: If the housing market is weakening, why are home prices still rising?
Answer: To answer this question, let us return to those thrilling days of yesteryear, when we first learned math. It was then we discovered that figures may not lie, but liars do figure.
You see, there are averages and there are averages. And when it comes to home prices, you need to know how they are calculated before you can conclude what’s happening to the price of the average home.
Knowing what’s actually happening to home prices will help you determine if the price of the home you are selling or buying is right.
The other reasons? Read on:
Commentary: Don’t Judge Housing Market By the Numbers – By Dr. Irwin Kellner, The Real Estate Journal