As promised, here's a better look at the existing home sales numbers with an eye towards the bay area.

If you were watching the headlines yesterday, you saw the world coming to an end!
It's the natural sensationalistic thing to do.
Is that a word?
It should be!

Headlines like:

"Existing Home Sales Tumble in 2006"
"Existing Home Sales Hit 17-Year Low While Mortgage Rates Rise"
We even have the sky falling overseas,
"European Markets Fall On US Existing Home Sales Data, Weak Oils ..."

Headlines like that would lead you to believe.

In scanning the headlines an came across this little tidbit:
Two different news agencies, two different takes on the same story.



One says prices "Plunged", the other says they slipped "Modestly". Same numbers, same report, same day. Two sides to every coin right?

In the bay area here's how our numbers played out:

7,488 new and resale houses and condos sold in the Bay Area last month.

That's an increase of 3.9 percent from November, but down 19.9 percent from December last year.
Over the year, you can see we're actually a bit higher than last January.

What's it all mean?
To the short term person, the flipper, the speculator:
Not so good news, best to have sold in June when prices hit there high.
Now you'll probably have to hold till this June again to get your price.
Rates are probably going to go up, not go lower.
This is a key indicator to the Feds, they'll look at this as a healthy adjustment.
Further lessening the likelihood of their lowering rates any time soon.
That impacts your buying ability, as well as your buyers ability.
If you are buying - buy now. The market probably isn't going to go lower and why wait?
Get in the game!

To the long term person, the buy and hold, the RE investor:
Nothing new, business as usual.
We're in it for the year over year.
We have an exit strategy, we know where we are going.
The market fluctuates because that what it does.

I've said it before.
We are special here in the bay area.
Not "little yellow bus" special, insulated from the rest of the nation special.
I'm all for investing and owning in the bay area!

Oh, and the new home sales should be coming out today.
I don't care.
Neither should you.
It's the most skewed and incorrect report we're hit with.
I'd tell you why but I'll save that for another day.