The Same Old Song and Dance... it's Bad, but it's Not!
(LAKE TAHOE REAL ESTATE BLOG) Home prices have fallen for the tenth month in a row, according to the Case-Shiller price index released Wednesday by Standard & Poor's. The report indicates that 11 of 20 U.S. metro area show record-low growth rates. South Lake Tahoe, of course, is not among these areas.
Once again, this news is spun as bad news for the housing sector. In fact this time it’s called “grim’ by Robert Shiller, chief economist at MacroMarkets LLC and co-developer of the index.
It’s true, this news would be considered “bad” if one were trying to sell their house over market value right now, but it wouldn’t be so if one were buying at present. It would be, and is, good news indeed.
If one were not selling their house at this time, like us, it’s news of interest, possibly. If one has no intention of selling their house for some time, if ever, this news may bring no interest at all. Because real estate markets are cyclical, home values change consistently, and often frequently, with market trends and conditions. The value only changes if one actually sells.
Consistent with this report, we’ve also found price declines recently in South Lake Tahoe as well. In the last 90 days, the median sold price on the South Lake Tahoe, CA side of our market is $380,000. It was $415,000 six months ago, and $425,000 a year ago (365 calendar days).
If you were buying right now, what would you rather pay for a house. $380,000, or $425,000? The question is rather absurd, isn’t it? Sometimes so is the spin we see in our daily news.
For the complete Case-Schiller index article from today, click here.
For a complete breakdown of all South Lake Tahoe, CA home sales in the last 365 days, click here.
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