A series of very similar headlines caught my attention today:
- Wall Street Journal: Home Sales Climb But Prices Decline
- CBS News: Home sales up, but housing prices continue to fall nationwide
- The Real Deal: U.S. existing home sales rise slightly, but prices fall
- Chicago Tribune: Local existing home sales up double-digits in October, but prices fall
- St. Louis Post-Dispatch: St. Louis-area home sales up, but prices down
- Bangor Daily News: Maine home sales up in October, but prices slip
- St. Paul Pioneer Press: Minnesota home sales surge in October, but prices still falling
News writers still don’t seem to get it. Home sales are increasing because of lower prices. Just like televisions, cars, and any other material good, when homes become more affordable, more people buy them. It isn’t rocket science, people.
I for one am thankful for falling prices.