The early morning news here just reported that for August 2008, home sales are up over the previous year, for the second consecutive month, but that home prices continued their decline, with the median home price falling from $475,000 in August 2007 to $350,000 in August 2008.
Both are actually good news for real estate here in San Diego. More people can afford homes with the lower prices, and it looks like more people are buying them.
It's interesting that demand is up but prices are down. Whatever happened to the theory of supply and demand? In this case, an excessive supply still exists with the continuing influx of foreclosed and short-sale properties.
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