Just like a stock representing a company a home represents a community and neighborhood. When the stock market is going gangbusters there are certain stocks that not only don't go up they go down. The overall market conditions dictate the trend of price and the velocity of movement. Individual stocks sometimes become way overpriced or conversely deeply discounted.

Because the cost of a home represents today's materials,labor and land variables the benchmark for overpriced underpriced cannot be more than 18 months of comparative sales. Don't believe the media hype of crashes as it will not happen in a sought after community or neighborhood. I have seen price pull backs of 8-12% in my local Monmouth County markes since the highs of 2006. This is a good time to make an offer and still hope of getting a futher 1-3% discount.

june 1,2007