Sometimes it’s worthwhile to take a step back to go forward. In this case, I’m thinking good old fashion Econ 101. If demand rises (and surely there has been evidence that demand is rising, and supply does not substantially change, what happens to price?
It will come as no surprise that for a number of reasons in the past years, there has been little demand. So, when there is little demand, price keeps falling until a point in time that something happens.
Over the past 4 or more years, there had been a declining demand due to … (0 comments)
economics 101: Sale Prices Decline In Northern Illinois
- 03/26/12 11:29 AM
Based on information reported last week about sales prices in Northern Illinois, some counties experienced bigger drops in prices than others. The median selling price last month dropped almost 16% in Lake County and 13.7% in McHenry County from year-earlier comparisons. In Cook County, sales rose 9.5%, to 2,441 homes sold but the median price of $125,000 was down 12% from a year earlier. So, volume rose but prices fell. Economics 101. Michael Hobbs, PahRoo Appraisal & Consultancy
… (1 comments)
economics 101: Economics 101: Prices Down, Sales Up
- 03/24/12 07:46 AM
Granted, it has been a while since I last sat in an economics class, but I faintly recall one or two principles of economics. When prices goes down, buyers typically show up. This past week in Chicago, it was announced that the median selling price dropped 13.5% to $165,000 from $190,750 as 607 condominiums were sold last month and that was a 4.3% increase in volume from a year earlier. Also announced last week in Chicago, the median sales price was basically unchanged having only dropped 0.5% and no surprise, there was little to no increase in the number of homes … (2 comments)
;)
;)
